Assessing New Technology Privacy Impact
Overview
Article 35(1) of the GDPR explicitly references new technologies as a factor increasing the likelihood of high risk to data subjects' rights and freedoms. The EDPB in WP248rev.01 identifies innovative use of technology as one of nine criteria triggering a DPIA. This skill provides a structured PIA methodology for emerging technologies where the privacy implications are not yet fully understood, including Internet of Things (IoT), blockchain and distributed ledger technologies, augmented and virtual reality (AR/VR), quantum computing, digital twins, brain-computer interfaces, and ambient computing.
Technology-Specific Privacy Risk Profiles
Internet of Things (IoT)
| Risk Area |
Description |
Privacy Impact |
| Pervasive data collection |
IoT devices continuously collect environmental and behavioural data, often without visible indicators |
Data subjects may be unaware of the scope of data collection; transparency obligations under Art. 13-14 are difficult to fulfil on devices without screens |
| Data minimisation challenges |
Sensors often collect more data than needed for the immediate purpose to enable future analytics |
Violation of Art. 5(1)(c) data minimisation; purpose creep through accumulated data |
| Device-to-device communication |
IoT ecosystems share data between devices without user awareness |
Unexpected recipients; difficulty identifying all processors and sub-processors |
| Insecure by default |
Many IoT devices ship with default credentials, unencrypted communications, and no update mechanism |
Art. 25 data protection by design and Art. 32 security of processing obligations not met |
| Location and behavioural tracking |
Connected devices reveal location patterns, daily routines, and behavioural habits |
Systematic monitoring (WP248 C3); profiling risk (WP248 C1) |
| Cross-device correlation |
Data from multiple IoT devices can be combined to create comprehensive behavioural profiles |
Matching or combining datasets (WP248 C6); disproportionate surveillance |
EDPB Guidelines 02/2023 on IoT and Wearable Devices: Emphasized that IoT devices must implement data protection by design, provide clear privacy notices (adapted to device constraints), and enable genuine consent mechanisms.
Blockchain and Distributed Ledger Technology
| Risk Area |
Description |
Privacy Impact |
| Immutability vs right to erasure |
Blockchain's append-only nature conflicts with Art. 17 right to erasure |
Technical inability to delete personal data recorded on-chain |
| Transparency of transactions |
Public blockchains expose transaction data to all participants |
Personal data potentially accessible to unlimited recipients |
| Pseudonymity not anonymity |
Blockchain addresses are pseudonymous but can be linked to real identities through transaction analysis |
Re-identification risk; Art. 4(5) pseudonymisation does not equal anonymisation |
| Controller identification |
Decentralised governance makes it difficult to identify the data controller |
Art. 26 joint controller arrangements may be needed; accountability unclear |
| Cross-border by design |
Distributed ledger nodes are typically located across multiple jurisdictions |
Chapter V international transfer obligations triggered |
| Smart contract automation |
Smart contracts execute automatically without human intervention |
Art. 22 automated decision-making implications when smart contracts affect individuals |
CNIL Blockchain Guidance (2018): Recommended storing personal data off-chain with only hashes on-chain; using commitment schemes; designating participants who decide to use blockchain as controllers.
Augmented and Virtual Reality (AR/VR)
| Risk Area |
Description |
Privacy Impact |
| Biometric data collection |
Eye tracking, facial expressions, body movements, voice patterns |
Art. 9 special category data (biometric data for identification); Art. 35(3)(b) trigger |
| Spatial mapping |
AR/VR devices scan and map physical environments including private spaces |
Collection of data about third parties present in the environment without their consent |
| Behavioural profiling |
Gaze tracking reveals interests, attention patterns, and cognitive state |
Highly personal data; evaluation and scoring (WP248 C1) |
| Immersive manipulation |
VR environments can influence behaviour through environmental design |
Art. 5(1)(a) fairness; potential for subliminal manipulation |
| Persistent identity |
Avatar and behavioural biometrics create persistent identifiable profiles |
Long-term tracking across virtual environments |
| Child safety |
Minors using VR platforms face enhanced risks |
Vulnerable data subjects (WP248 C7); Art. 8 child consent requirements |
Quantum Computing
| Risk Area |
Description |
Privacy Impact |
| Cryptographic vulnerability |
Quantum computers may break current encryption standards (RSA, ECC) |
Art. 32 security measures based on current encryption become insufficient |
| Retroactive decryption |
Encrypted data harvested today can be decrypted when quantum computers mature (harvest now, decrypt later) |
Data currently protected may become exposed; long-term confidentiality compromised |
| Enhanced data analytics |
Quantum machine learning can process data at scales impossible for classical computers |
New forms of profiling and inference; privacy-preserving techniques may be defeated |
| Post-quantum migration |
Transitioning to quantum-resistant cryptography requires significant infrastructure changes |
Interim vulnerability period during migration |
ENISA Post-Quantum Cryptography Report (2024): Recommended organisations begin quantum risk assessment and plan migration to NIST-standardised post-quantum algorithms (ML-KEM, ML-DSA, SLH-DSA).
Digital Twins
| Risk Area |
Description |
Privacy Impact |
| Comprehensive data aggregation |
Digital twins aggregate data from multiple sources to create a virtual replica |
Matching or combining datasets (WP248 C6); comprehensive profiling |
| Predictive modelling of individuals |
Digital twins of patients or employees predict future states and behaviours |
Evaluation and scoring (WP248 C1); Art. 22 implications for predictions affecting individuals |
| Continuous synchronisation |
Real-time data feeds maintain the digital twin's accuracy |
Systematic monitoring (WP248 C3); proportionality concerns |
| Blurred anonymisation boundary |
Even without direct identifiers, a sufficiently detailed digital twin may be re-identifiable |
Pseudonymisation vs anonymisation assessment required |
PIA Methodology for Emerging Technologies
Phase 1: Technology Understanding (Week 1)
- Document the technology's data processing characteristics:
- What data is collected (categories, volume, frequency)
- How data flows through the technology stack
- Where data is stored and processed (geographic locations)
- Who has access to data at each stage
- How long data is retained
- What security measures protect data at each stage
- Identify the technology's novel risk characteristics that distinguish it from established technologies.
- Map the technology against the EDPB WP248rev.01 nine criteria.
- Consult published regulatory guidance specific to the technology (EDPB, CNIL, ICO, ENISA).
Phase 2: Stakeholder Impact Mapping (Week 2)
- Identify all affected data subjects:
- Direct users of the technology
- Third parties whose data may be incidentally collected
- Bystanders (particularly relevant for IoT, AR/VR, spatial computing)
- Identify vulnerable data subjects (children, employees, patients, elderly).
- Map potential impacts on each stakeholder group:
- Privacy impacts (loss of control, unexpected processing)
- Autonomy impacts (manipulation, reduced choice)
- Equality impacts (discriminatory outcomes, digital exclusion)
- Safety impacts (physical harm from decisions based on technology)
- Document data subject expectations versus actual processing.
Phase 3: Proportionality Assessment (Week 3)
For each data processing element of the technology:
| Assessment Question |
Analysis Required |
| Is this processing necessary for the stated purpose? |
Document why the technology cannot achieve its purpose without this data |
| Could the purpose be achieved with less data? |
Evaluate data minimisation alternatives (aggregation, sampling, synthetic data) |
| Could the purpose be achieved with less identifying data? |
Evaluate anonymisation, pseudonymisation, and differential privacy options |
| Could the purpose be achieved with a less invasive technology? |
Compare the proposed technology against established alternatives |
| Are the benefits proportionate to the privacy intrusion? |
Balancing test: public interest vs individual privacy impact |
| Have data subjects been consulted on the acceptability of the intrusion? |
Art. 35(9) data subject views; user acceptance research |
Phase 4: Risk Assessment and Mitigation (Week 4-5)
- For each identified risk, assess likelihood and severity using the standard DPIA risk matrix.
- Identify technology-specific mitigation measures:
- Privacy-enhancing technologies (PETs): differential privacy, homomorphic encryption, secure multi-party computation, federated learning
- Data protection by design: privacy-preserving defaults, granular consent, purpose-bound processing
- Transparency mechanisms adapted to technology constraints (audio notices for screenless IoT, visual indicators for AR/VR)
- Assess residual risk after mitigation.
- If residual risk remains high, consider whether the technology should be deployed at all, not just how to mitigate risks.
Phase 5: Ongoing Monitoring Framework (Week 5-6)
- Define monitoring metrics specific to the technology:
- Data collection volumes (detect scope creep)
- Access patterns (detect unauthorised use)
- Accuracy and reliability of technology outputs
- User complaints and feedback
- Establish review triggers:
- Technology update or version change
- New use case or feature added
- Security vulnerability discovered
- Regulatory guidance issued for the technology
- Peer data breach involving similar technology
- Define a sunset plan: how will personal data be handled if the technology is decommissioned?
Privacy-by-Design Requirements for Emerging Technologies
| Principle |
Implementation for Emerging Tech |
| Proactive not reactive |
Conduct PIA before technology deployment, not after incidents |
| Privacy as default |
Technology must ship with privacy-protective defaults; opt-in for additional data collection |
| Privacy embedded in design |
Privacy requirements must be part of the technology specification, not bolt-on |
| Full functionality |
Privacy protections should not degrade the technology's core functionality |
| End-to-end security |
Data protection from collection through deletion, including inter-device communication |
| Visibility and transparency |
Clear indicators when technology is collecting data; accessible privacy notices |
| Respect for user privacy |
User-centric design; genuine choice and control over personal data |
Enforcement Precedents
- Spanish AEPD vs CaixaBank (2021): EUR 6 million fine for deploying new profiling technology (behavioural analytics for targeted financial products) without adequate DPIA for innovative technology use.
- ICO vs Clearview AI (2022): GBP 7.5 million fine for novel facial recognition technology scraping public images without lawful basis or DPIA.
- CNIL vs Amazon Europe (2020): EUR 35 million fine for deploying cookie tracking technology without valid consent on the Amazon.fr website.
- Italian Garante vs Foodinho/Glovo (2021): EUR 2.5 million fine for deploying algorithmic management technology (AI-driven shift allocation for riders) without DPIA.
- Belgian DPA vs IAB Europe (2022): EUR 250,000 fine for the Transparency and Consent Framework (TCF) used in programmatic advertising technology; found that TCF constituted processing of personal data without adequate controller designation.