Former Officials Recommend Against Ownership Assumptions With DOJ Rule
DOJ’s data transfer rule might require a “deeper analysis on vendors and third parties” than expected, attorneys at Baker McKenzie said Monday in an opinion piece for the IAPP.
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Brian Hengesbaugh, a former general counsel at the Department of Commerce, and Janet Kim, a former White House adviser, said companies might be wrong to assume the rule doesn’t apply to them because there are no Chinese companies on their vendor lists.
The ownership question is more complicated because the rule covers “companies located outside countries of concern if they are owned 50% or more by covered persons,” they said. They suggested supply chain and trade teams “are likely better prepared than privacy professionals to identify these types of business partners given their prior experience with sanctions and other issues.”