Neon · Neon Terms of Service · View original document ↗

Databricks Affiliate Relationship and Multi-Entity Structure

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Document Record

What it is

Your contract is with Neon LLC, but Neon is now part of the Databricks corporate family, which may mean Databricks-level terms, data handling practices, or sub-processors also apply to your use of the platform.

This analysis describes what Neon's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This structure means your data and contractual obligations may involve more than one corporate entity, which has practical implications for data protection agreements, liability allocation, and vendor due diligence.

Interpretive note: The full text of the Product Specific Schedule was not available in the provided document; the affiliate structure is confirmed by the meta description but the operational implications for data handling depend on provisions in the full agreement and any applicable master agreement with Databricks.

Consumer impact (what this means for users)

Customers storing data in Neon databases should confirm whether Databricks entities are identified as sub-processors under applicable data protection law, particularly if operating under GDPR or CCPA compliance obligations.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
  • Export Your Data
    Review Neon's security and compliance page to identify current sub-processors and assess whether your existing Data Processing Agreement covers Databricks-affiliated entities. Contact Neon's sales or legal team if you require an updated DPA.

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▸ View Original Clause Language DOCUMENT RECORD
"
This Neon Platform Services Product Specific Schedule ("Product Specific Schedule") is entered into as of the Effective Date between Neon, LLC ("Neon" or "we"), an affiliate of Databricks, Inc. ("Databricks"), and Customer (as defined below) ("Customer", "you," or "your") and governs Customer's use of the Neon proprietary cloud computing platform

— Excerpt from Neon's Neon Terms of Service

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: The Databricks affiliate relationship engages GDPR Article 28 sub-processor obligations for EU/EEA customers, requiring that any transfer of personal data to or through Databricks entities be covered by appropriate contractual mechanisms. The FTC Act may also apply to representations made about data handling practices across affiliated entities. Enforcement authorities include national data protection authorities within the EU/EEA and the FTC in the United States. (2) GOVERNANCE EXPOSURE: High. The multi-entity structure creates ambiguity about which entity controls or processes customer data, which entity bears liability for data incidents, and whether Databricks' own platform terms impose additional obligations on Neon customers. This is particularly significant for enterprise customers with established data protection compliance programs that relied on Neon as a standalone entity. (3) JURISDICTION FLAGS: EU and EEA customers face the highest exposure, as the Databricks affiliation may constitute a cross-border data transfer requiring standard contractual clauses or equivalent mechanisms. UK customers face similar considerations post-Brexit. California customers should evaluate whether the Databricks relationship affects Neon's status as a CCPA service provider. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should update vendor assessments to reflect the Databricks affiliation and request a current sub-processor list from Neon. Existing Data Processing Agreements should be reviewed to confirm they cover data flows to and from Databricks-affiliated entities. The product-specific schedule structure implies a parent agreement exists; that parent agreement should be obtained and reviewed for liability caps, indemnification terms, and data handling provisions. (5) COMPLIANCE CONSIDERATIONS: Compliance teams should trigger a vendor relationship review to assess whether the Databricks acquisition or affiliation constitutes a material change requiring notification to regulators, customers, or internal governance bodies. Data mapping exercises should be updated to reflect potential Databricks data flows. Organizations subject to GDPR should confirm whether updated Data Processing Agreements are required.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC oversees unfair or deceptive practices in data handling by US-based technology companies, including representations made about data sharing with affiliated entities.
    File a complaint →

Applicable regulations

DSA
European Union

Provision details

Document information
Document
Neon Terms of Service
Entity
Neon
Document last updated
May 5, 2026
Tracking information
First tracked
May 7, 2026
Last verified
May 9, 2026
Record ID
CA-P-007729
Document ID
CA-D-00685
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
4133d284bb924c6c749461aeb90835a0680daf48068ac210d1085a90a5339ef1
Analysis generated
May 7, 2026 09:50 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Neon
Document: Neon Terms of Service
Record ID: CA-P-007729
Captured: 2026-05-07 09:50:58 UTC
SHA-256: 4133d284bb924c6c…
URL: https://conductatlas.com/platform/neon/neon-terms-of-service/databricks-affiliate-relationship-and-multi-entity-structure/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Neon's Databricks Affiliate Relationship and Multi-Entity Structure clause do?

This structure means your data and contractual obligations may involve more than one corporate entity, which has practical implications for data protection agreements, liability allocation, and vendor due diligence.

How does this clause affect you?

Customers storing data in Neon databases should confirm whether Databricks entities are identified as sub-processors under applicable data protection law, particularly if operating under GDPR or CCPA compliance obligations.

Is ConductAtlas affiliated with Neon?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Neon.