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Daily Dashboard | German court overturns procurement chamber's decision to block hospitals from transferring data to US subsidiary Related reading: European Commission's EU-US draft adequacy decision imminent

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Editor's Note:

Editor’s note: This news brief has been updated to clarify Germany’s Karlsruhe Higher Regional Court’s decision to allow a Luxembourg-based U.S. subsidiary to process patient discharge data. 

The Karlshrue Higher Regional Court overturned the Public Procurement Chamber of Baden-Württemberg's decision blocking hospitals from processing digital discharge management data by a U.S. subsidiary in Luxembourg. Per the decision, all data must be processed in Germany. The Public Procurement Chamber previously ruled the Luxembourg subsidiary was disqualified from bidding on the service because its U.S. ownership would constitute an illegal data transfer under the EU General Data Protection Regulation.
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  • comment Iain Cunningham • Sep 9, 2022
    I don't believe this summary is correct. From the Google German-to-English translation, The Karlsruhe court overturned the decision of the Public Procurement Chamber because: "In the opinion of the Senate, when reviewing an award decision, it can generally be assumed that a bidder will fulfill his contractual commitments. . . . [T]he provider had made clear assurances about the content of the contract between it and the Luxembourg holding service provider. According to this, data may only be transmitted to this Luxembourg company and processed by them without exception and only in Germany. On this basis, the hospital companies can justifiably trust that the provider will also implement these specifications in their relationship with the hosting service provider in accordance with the contract." In other words, the German regional court *allowed* the data transfers, not blocked them.