EDPD PR 7 of 16 May 2022

Calculation of administrative fines under the GDPR: EDPD adopts new Guidelines

The European Data Protection Board (EDPB) on 12 May 2022 adopted new Guidelines on the calculation of administrative fines, harmonising the methodology data protection authorities (DPAs) use. The guidelines also include harmonised ‘starting points’ for the calculation of a fine. Hereby, three elements are considered: the categorisation of infringements by nature, the seriousness of the infringement and the turnover of a business.

EDPB Chair, Andrea Jelinek said: “From now on, DPAs across the EEA will follow the same methodology to calculate fines. This will boost further harmonisation and transparency of the fining practice of DPAs. The individual circumstances of a case must always be a determining factor and DPAs have an important role in ensuring that each fine is effective, proportionate and dissuasive.”

The guidelines set out a 5-step calculation methodology. First, DPAs have to establish whether the case at stake concerns one or more instances of sanctionable conduct and if they have led to one or multiple infringements. The purpose is to clarify if all the infringements or only some of them can be fined.

Second, DPAs have to rely on a starting point for the calculation of the fine for which the EDPB provides a harmonised method.

Third, DPAs have to consider aggravating or mitigating factors that can increase or decrease the amount of the fine, for which the EDPB provides a consistent interpretation.

The fourth step is to determine the legal maximums of fines as set out in Art. 83 (4)-(6) GDPR and to ensure that these amounts are not exceeded.

In the fifth and last step, DPAs need to analyse whether the calculated final amount meets the requirements of effectiveness, dissuasiveness and proportionality or whether further adjustments to the amount are necessary.

The guidelines are an important addition to the framework the EDPB is building for more efficient cooperation among DPAs on cross-border cases, a strategic priority for the EDPB.

Verlag Dr. Otto Schmidt vom 19.05.2022 13:59
Quelle: EDPD PR 7 of 16 May 2022

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