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)

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
2. Identify the technology's novel risk characteristics that distinguish it from established technologies.
3. Map the technology against the EDPB WP248rev.01 nine criteria.
4. Consult published regulatory guidance specific to the technology (EDPB, CNIL, ICO, ENISA).

Phase 2: Stakeholder Impact Mapping (Week 2)

1. 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)
2. Identify vulnerable data subjects (children, employees, patients, elderly).
3. 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)
4. 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)

1. For each identified risk, assess likelihood and severity using the standard DPIA risk matrix.
2. 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)
3. Assess residual risk after mitigation.
4. 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)

1. 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
2. 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
3. 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.