Israeli Researcher Resigns Amid Concerns Over Data Protection Status with European Union
Israeli researcher Professor Eran Toch has resigned from his role as a member of the Council for the Protection of Privacy at the Ministry of Justice after seven years of service. Toch, who was appointed by former Minister of Justice Ayelet Shaked, made the decision following the advancement of a law that could jeopardize Israel’s legal status with the European Union.
Israel currently holds a special legal status with the European Union, allowing for the straightforward transfer and receipt of data between the two entities. However, recent re-evaluations of this status have raised concerns about potential complications in data transfers. If Israel were to lose its special status, businesses operating in the country could face significantly higher costs for consulting processes to maintain data protection when working with European citizens.
Professor Toch emphasized the economic impact of losing Israel’s compatibility with European privacy regulations, citing a study from Britain that estimated businesses in countries losing their special status with the European Union could pay tens to hundreds of thousands of shekels more per year for data protection processes. He noted that small companies, such as B&Bs or e-commerce websites, could face an average increase of NIS 42,000, while larger companies, like high-tech firms, could see an additional NIS 690,000 per year in expenses.
Israel’s trade relationship with the European Union is significant, with Europe being its largest trading partner. The potential loss of the special status could complicate deals and data transfers between Israeli companies and European partners, affecting industries like tourism, high-tech, and government information storage.
Professor Toch compared Israel’s position to that of the United States and Britain, emphasizing the legislative amendments made by both countries to maintain their status with the European Union. The loss of Israel’s special status could result in the need for special agreements, complex contracts, and information systems, adding additional complexities to data transfers.
He also expressed concerns that Israel’s legal legislation and the proposal to abolish the reason for reasonableness could impact Israel’s standing with the European Union, as the country’s legal system is examined for compatibility. Professor Toch highlighted the need for Israel to maintain a legal system similar to that of the European Union to preserve its special status.
Although Europe relies on Israeli industries, Professor Toch warned that recent warnings and opposition to Israel’s actions could lead European companies to reconsider working with Israeli companies in the future. He urged the Minister of Justice to address this issue, stressing the importance of finding a solution.
Israel has yet to respond to the concerns raised by Professor Toch and others regarding the potential loss of its special status with the European Union.