GDPR-Compensation For Non-material Damage Not Automatic, CJEU Confirms

• Jurisdiction: European Union
• Published date: 26 May 2023
• Subject Matter: Privacy, Data Protection
• Law Firm: Preiskel & Co
• Author: Jose Saras and Xavier Prida
• topic: Civil Procedure

On 4 May 2023, the Court of Justice of the European Union ("CJEU") delivered a preliminary ruling for the case UI v 'sterreichische Post AG (Case C-300/21). The CJEU addressed three important questions surrounding the interpretation of Article 82 of the General Data Protection Regulation ("GDPR") on the right to compensation:

• Is an infringement of the GDPR alone enough to warrant the right to compensation?
• Does Article 82 propose that national courts should apply domestic rules to determine the extent of financial compensation?
• Does Article 82(1) preclude a national rule which enforces a threshold of seriousness that must be satisfied before a data subject can receive compensation for non-material damage?

CJEU rulings are binding within the EU and no longer in the UK (though UK organisations may need to adhere to them, when the extraterritorial provisions of the EU's GDPR apply).

Background

The Austrian Post collected information to identify political affinities in Austria and by processing this information, they found that a particular citizen had a high degree of affinity with a right-wing political party. The...