Arbitration and Personal Data Protection in the Czech Republic: A Collaborative Approach

In the evolving landscape of data protection, the resolution of disputes arising from processing agreements under Article 28 of the GDPR or joint controller arrangements under Article 26 presents unique challenges. Traditional litigation often proves slow, costly, and ill-suited to the sensitive nature of personal data. In response, the Czech Republic offers a compelling alternative: arbitration proceedings administered by the Arbitration Court attached to the Czech Chamber of Commerce and the Agrarian Chamber of the Czech Republic (“Arbitration Court”), in cooperation with the Czech Association for Personal Data Protection.
‍

A Trusted Arbitration Framework

Established in 1949, the Arbitration Court is one of the most respected international arbitration institutions in Central Europe. It is recognized for its transparent procedures, adaptability to modern arbitration trends, and high-quality administration of disputes. The Court’s rules allow parties to influence the pace of proceedings, select the venue for hearings, and appoint arbitrators with specialized expertise. Importantly, arbitral awards issued by this Court are enforceable in 172 countries under the New York Convention, making it a viable option for international data protection disputes
‍

Collaboration with the Czech Association for Personal Data Protection

To ensure the highest standards of expertise in GDPR-related disputes, the Arbitration Court has partnered with the Czech Association for Personal Data Protection. This collaboration enables parties to appoint arbitrators with deep knowledge of personal data processing, cybersecurity, and regulatory compliance. The Association maintains a publicly accessible list of recommended experts who are qualified to serve as arbitrators in these proceedings.
‍

This partnership not only enhances the quality of decision-making but also promotes arbitration as a preferred method of dispute resolution among data controllers and processors, both domestically and internationally.

‍
Key Advantages of Arbitration in Data Protection Disputes

‍Arbitration offers several distinct benefits over traditional litigation, particularly in the context of personal data protection:
• Speed and Efficiency: Arbitration proceedings are significantly faster than court litigation, reducing legal uncertainty and enabling quicker resolution of disputes.
• Expertise in Decision-Making: Parties can appoint arbitrators with specialized knowledge in GDPR, data protection, and information security, ensuring informed and technically sound decisions.
• Confidentiality: Arbitration is conducted in private, safeguarding sensitive information such as trade secrets and personal data. This aligns with the GDPR’s principle of privacy by default and mitigates the risk of reputational harm or further legal exposure.
• Protection of Data Subjects’ Rights: The non-public nature of arbitration proceedings minimizes the risk of disclosing personal data during dispute resolution.
• International Enforceability: Arbitral awards are more readily enforceable abroad than judgments from national courts, facilitating cross-border compliance and dispute resolution.
• Flexibility and Cost-Effectiveness: Arbitration allows parties to tailor procedures to their needs, often resulting in lower overall costs compared to litigation

‍
Promoting Arbitration in the Data Protection Community

The joint efforts of the Arbitration Court and the Czech Association for Personal Data Protection aim to raise awareness of arbitration’s benefits among legal professionals, data controllers, and processors. By offering a reliable, expert-driven, and internationally recognized forum for resolving GDPR-related disputes, this initiative contributes to a more efficient and privacy-conscious legal environment.

‍
Foreign legal practitioners and data protection experts are encouraged to consider arbitration in the Czech Republic as a strategic option for resolving complex data protection disputes. Whether the issue involves cross-border data transfers, joint controllership, or processor obligations, arbitration provides a robust and adaptable mechanism that respects both legal and privacy imperatives.

‍
Appointment of Arbitrators in GDPR-Related Arbitration

‍
• Tribunal Composition: Disputes are typically resolved by a three-member arbitral tribunal. Each party appoints one arbitrator, and the two appointed arbitrators jointly select the chairperson. If a party fails to appoint an arbitrator within the prescribed time, the President of the Arbitration Court will do so on their behalf.
• Sole Arbitrator Option: If both parties agree, the dispute may be resolved by a sole arbitrator. This arbitrator may be:
• Named in the arbitration agreement,
• Agreed upon after proceedings begin,
• Or appointed by the President of the Arbitration Court if no agreement is reached.
A sole arbitrator cannot be appointed unilaterally by one party.
• Qualifications and Approval: Arbitrators must meet criteria set out in the Directive on the Prerequisites for Performing Arbitrator Duties. They may be lawyers, economists, or civil engineers.
All nominated arbitrators must be approved by the President of the Arbitration Court to ensure impartiality and competence.
• Delegated Appointment: If a party chooses not to nominate an arbitrator, it may delegate the appointment to the President, who will select a qualified arbitrator from the Court’s recognized roster.

‍
For more information, including procedural rules and a list of recommended arbitrators, please visit:
• Arbitration Court
• Czech Association for Personal Data Protection

‍