In the wake of the UK Extension to the EU-US Data Privacy Framework, commonly known as the Data Bridge, it’s more crucial than ever for UK companies to rigorously document their APIs with robust data classification. The Data Bridge, which came into effect on October 12, allows for easier transfer of personal data from the UK to the US¹. While this is a significant step forward in international data exchange, it also raises concerns about the adequacy of data protection, particularly when transmitting sensitive data over APIs.
THE GAP IN DATA PROTECTION
The European Commission adopted an adequacy decision in favour of the EU-US Data Privacy Framework (DPF) back in July². However, the US does not offer protections equivalent to those set out in the UK’s Rehabilitation of Offenders Act 1974³. This act places limits on the use of data relating to criminal convictions that have been “spent” following the relevant rehabilitation period. The Information Commissioner’s Office (ICO) has noted that it’s unclear how these protections would apply to information transferred to the US⁴.
THE API VULNERABILITY
APIs are the backbone of modern digital operations, facilitating data exchange between different systems. However, sensitive data is often not classified when being transmitted over APIs. This lack of classification can lead to potential misuse and unauthorized access, especially when data is transferred to jurisdictions with different legal frameworks for data protection.
THE IMPORTANCE OF API GOVERNANCE
API governance involves setting up rules and best practices for API usage, which includes robust documentation and data classification. Properly documented APIs with strong data classification benefit internal teams and external users, enabling them to navigate the system securely. It’s not just about listing API endpoints; it’s about understanding the kind of data each API handles and the level of sensitivity attached to it.
THE WAY FORWARD
Given the complexities around data transfer, especially with the new Data Bridge, UK companies must prioritize API documentation focusing on data classification. This will not only enhance data security but also ensure compliance with international data transfer agreements like the UK International Data Transfer Agreement (IDTA)⁵.
In conclusion, as we navigate the evolving landscape of data privacy and international agreements, the need for robust API governance, complete with strong data classification, has never been more urgent.
¹: [“UK-US data bridge to open for business”](https://www.theregister.com/2023/10/11/uk_us_data_bridge/)
²: [European Commission’s adequacy decision](https://ec.europa.eu/info/law/law-topic/data-protection/international-dimension-data-protection/adequacy-decisions_en)
³: [Rehabilitation of Offenders Act 1974](https://www.legislation.gov.uk/ukpga/1974/53)
⁴: [ICO’s observations on data protections](https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/international-transfers/)
⁵: [UK International Data Transfer Agreement (IDTA)](https://ico.org.uk/media/about-the-ico/consultations/2619922/international-data-transfer-agreement-idta-consultation-document-20210726.pdf)
Previously posted at Contxt by MAYUR UPADHYAYA