This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
viewpoints
Welcome to Reed Smith's viewpoints — timely commentary from our lawyers on topics relevant to your business and wider industry. Browse to see the latest news and subscribe to receive updates on topics that matter to you, directly to your mailbox.
| 1 minute read

Immaterial damages in EU-data protection cases - Where is this going?

After various ECJ decisions (e.g. January 25, 2024 - C-687/21) and the German Federal Court of Justice decision (decision of November 18, 2024, docket no.: VI ZR 10/24), where the courts acknowledge immaterial damages of individuals due to “loss of control” of their data (listen to our podcast: https://reedsmithtech.podbean.com/e/unveiling-the-legal-implications-of-data-breach-compensation/), the European General Court now ordered payment of EUR 400 to an individual that alleged having suffered immaterial damages from an alleged data protection infringement. Read a great summary on the order by Friederike Wilde-Detmering, Hannah von Wickede and Johannes Berchtold: https://www.technologylawdispatch.com/2025/01/privacy-data-protection/european-general-court-data-privacy-pays-400-eur-for-personal-data-sent-across-the-atlantic/ 

Where is this leading? The ECJ will hopefully take a closer look at the case in the appeal. The plaintiff was registered with the social platform and pressed a “Connect” link on the website of the defendant (EU Commission). The court then agreed that the plaintiff had suffered non-material damages “himself in a position of some uncertainty as regards the processing of his personal data, in particular of his IP address.” 

The court does not even limit its decision to the Connect case, but generally talks about “links to US websites.” At least from a German perspective, this decision overextends the concept of immaterial damages too broadly. It is not understandable where the damage is and why a data subject wants to have certainty about his IP address (we are not even talking about email, names or bank data) when using US social media platforms. 

EU and Member State courts and authorities should consider the consequences of these decisions. Our court system will be swamped with unreasonable, absurd and abusive claims by consumer rights mass claim attorney firms and organizations, blocking the court system from engaging with more significant cases. 

The individual concerned suffered non-material damage, in that he found himself in a position of some uncertainty as regards the processing of his personal data, in particular of his IP address.

Tags

gdpr, damages, data breach, data transfer, eu, us, emerging technologies