Data Protection in Iceland

Enforcement in Iceland

EU regulation

Fines

The GDPR empowers supervisory authorities to impose fines of up to 4% of annual worldwide turnover, or EUR 20 million (whichever is higher).

It is the intention of the European Commission that fines should, where appropriate, be imposed by reference to the revenue of an economic undertaking rather than the revenues of the relevant controller or processor. Recital 150 of the GDPR states that 'undertaking' should be understood in accordance with Articles 101 and 102 of the Treaty on the Functioning of the European Union, which prohibit anti-competitive agreements between undertakings and abuse of a dominant position.

Advocate General Medina‘s Opinion in Case C-383/23, confirms that when determining whether a group of companies forms an 'undertaking', for the purposes of the GDPR, it should be considered whether the parent company exercises decisive control over its subsidiaries. The criteria for determining this are based on the economic, legal and organisational links between the parent company and its subsidiary, for example, the amount of the participation, personnel or organisational ties, instructions and the existence of company contracts. 

When calculating the fine for a GDPR infringement committed by a subsidiary, the supervisory data protection authorities must therefore, take into account the total annual turnover of the entire group, if the group forms an 'undertaking'. 

However, when determining the actual fine to be imposed, the concept of 'undertaking' must be used as one relevant element among others, considering specific circumstances of the individual case. Specific circumstances may relate to the decision-making power of the parent company, the scope of the data processing that infringes the rules of that regulation and the number of entities of the undertaking involved in the infringement. 

There is also precedent for regulators to impose joint and several liability on parent companies for fines imposed on those subsidiaries in some circumstances (broadly where there is participation or control), so-called "look through" liability.

Fines are split into two broad categories.

The highest fines (Article 83(5)) of up to EUR 20 million or, in the case of an undertaking, up to 4% of total worldwide turnover of the preceding year, whichever is higher, apply to infringement of:

  • the basic principles for processing including conditions for consent;
  • data subjects’ rights;
  • international transfer restrictions;
  • any obligations imposed by Member State law for special cases such as processing employee data; and
  • certain orders of a supervisory authority.

The lower category of fines (Article 83(4)) of up to EUR 10 million or, in the case of an undertaking, up to 2% of total worldwide turnover of the preceding year, whichever is the higher, apply to infringement of:

  • obligations of controllers and processors, including security and data breach notification obligations;
  • obligations of certification bodies; and
  • obligations of a monitoring body.

Supervisory authorities are not required to impose fines but must ensure in each case that the sanctions imposed are effective, proportionate and dissuasive (Article 83(1)).

Fines can be imposed in combination with other sanctions.

Investigative and corrective powers

Supervisory authorities also enjoy wide investigative and corrective powers (Article 58) including the power to undertake on-site data protection audits and the power to issue public warnings, reprimands and orders to carry out specific remediation activities.

Right to claim compensation

The GDPR makes specific provision for individuals to bring private claims against controllers and processors:

  • any person who has suffered "material or non-material damage" as a result of a breach of the GDPR has the right to receive compensation (Article 82(1)) from the controller or processor. The inclusion of “non-material” damage means that individuals will be able to claim compensation for distress even where they are not able to prove financial loss.
  • data subjects have the right to mandate a consumer protection body to exercise rights and bring claims on their behalf (Article 80).

Individuals also enjoy the right to lodge a complaint with a supervisory authority (Article 77). 

All natural and legal persons, including individuals, controllers and processors, have the right to an effective judicial remedy against a decision of a supervisory authority concerning them or for failing to make a decision (Article 78).

Data subjects enjoy the right to an effective legal remedy against a controller or processor (Article 79).


Iceland regulation

Non-compliance with the instructions of the Data Protection Authority regarding a) temporary or definitive limitation including a ban on processing, b) rectification or erasure of personal data or restriction of processing and the notification of such actions to recipients to whom the personal data have been disclosed, or c) suspension of data flows to a recipient in a third country or to an international organization, can lead to daily fines until necessary improvements have been made. Fines can amount up to ISK 200,000 (approximately EUR 1,320) for each day that passes without the Data Protection Authority’s instructions being observed.

Breaches of the DPA and the GDPR can lead to administrative fines that are imposed by the Data Protection Authority. The administrative fines may amount to  ISK 100,000 (approx. EUR 660) up to 1,2 billion ISK (approx. EUR 7,900,000), or, in case of a corporation, up to 2% of its annual overall turnover globally in the previous financial year, whichever is higher, when an infringement of the provisions detailed in Article 83(4) of the GDPR has taken place.

The administrative fines may amount to ISK 100,000 to ISK 2,4 billion (approx. EUR 15,850,000) or, in case of a corporation, up to 4% of its annual overall turnover globally in the previous financial year, whichever is higher, when an infringement of the provisions detailed in Articles 83(5)-83(6) of the GDPR, cf. Article 46 of the DPA, has taken place.

Major breaches can also lead to imprisonment up to 3 years and breach of confidentiality of a data protection officer can lead to fines or imprisonment up to 1 year and in severe cases, up to 3 years, cf. Article 48 of the DPA.

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