Preparing For a No-Deal Brexit
With less than two weeks to go before the UK is due to leave the EU on 31st October, it’s still anyone’s guess as to whether a deal will be achieved. Although the UK parliament passed the “Benn Act” to require the government to request an extension in the event that no deal can be agreed by 19th October, the Prime Minister Boris Johnson had made his extreme reluctance to do so very clear. Leading politicians continue to warn that the EU is heading for a no-deal Brexit by mistake, as reported by the BBC on 9th October.
A no-deal Brexit is a poor outcome for the UK as it would prolong the hesitation that the market is already struggling with. A crucial fallout from Brexit will be the loss of trade agreements with countries inside the EU, and particularly outside. Industries are already stalling and typically constricting marketing budgets in reaction to the ambiguity. The tightening of budgets is evident in the decrease in traditional ad spending across the top industries over the past year. At this time, digital ad spending is slowly growing, but this won’t evade the effects of a no-deal Brexit. For as long as the unknown continues, industry growth will likely remain stagnant, if not contract and their spending cautious.
However in the face of this uncertainty, you may be relieved to hear that one thing you can rely on is that Mediaocean is prepared in the event that the UK does leave the UK without a deal on 31st October.
As data is the heart of Mediaocean’s business, we’ve focused on how to maintain the free flow of information into the UK from Europe. Personal data is the primary concern; without a deal, the UK will not be treated as a “safe third country” until the EU Data Protection Board have had the time to approve the UK’s privacy legislation.
We’ve followed the advice given by the UK Information Commissioner’s Office, and we’ve mapped data flows from our European clients to our UK offices and service providers. We’ve ensured that we have appropriate safeguards in place to be able to continue these data flows – generally this has involved signing Standard Contractual Clause agreements to ensure the protection of personal data when it is transferred to the UK. In some cases, where we’ve determined that service providers can’t deliver the required safeguards, we’ve withdrawn our data from those providers (take a look at our vendor management policy for more information).