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ARTICLE · 18 MARCH 2024

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Liability For Data Breaches And The Recognition Of Non-material Damage Under The GDPR

On December 14, 2023, the Court of Justice of the European Union ("CJEU") delivered a landmark judgment, following the request of a preliminary ruling...

European UnionPrivacy

On December 14, 2023, the Court of Justice of the European Union ("CJEU") delivered a landmark judgment, following the request of a preliminary ruling, in the case of VB v. Natsionalna agentsia za prihodite (C 340/21) whereby the Court examined, among other aspects, liability and non-material damage under the EU General Data Protection Regulation ("GDPR").

Background

A cyber-attack committed against the Bulgarian National Revenue Agency (the "Agency") resulted in a data breach affecting over 6 million Bulgarian citizens and foreign nationals. The breach prompted legal actions from several hundred affected individuals, including the main appellant in the proceedings, who sought compensation from the Agency claiming non-material damages incurred due to the fear of the possible misuse and potential harm that could arise as a result of the unauthorized disclosure of their personal data.

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