EU Court Ruling Restricts Access to Transparency Register

The European Court of Justice (ECJ) has ruled that unrestricted public access to personal data within the transparency register constitutes a disproportionate interference with the right to privacy and data protection. The decision, made in late 2022, addresses concerns that such broad access could lead to the misuse of sensitive information.

In response to the ECJ's ruling, Germany's transparency register has temporarily restricted public access. Individuals seeking information from the register must now demonstrate a legitimate interest to gain entry.

Previously, since 2021, the register allowed public access to data without prior justification, excluding exact birth dates and residential addresses. This openness stemmed from an EU directive aimed at enhancing transparency of beneficial ownership.

The court argued that without restrictions, personal data could be collected and compiled into profiles, potentially revealing an individual's financial situation. It also highlighted the risk of data being stored and exploited by third parties without the data subject's control. The ECJ suggested that access limited to authorities and other obligated entities, or tied to a proven legitimate interest for the public, would suffice for transparency goals.

It is anticipated that German legislation will be updated to reflect the court's decision, likely reintroducing the requirement for a legitimate interest for public access. Dhpg, a consulting firm, notes that these measures may not offer complete protection against all forms of data disclosure.