Schrems fumes as EU signs new data deal with US

EU buildingJust hours after the UK entered a global data transfer deal, the European Commission has finally secured a new transatlantic agreement to replace Privacy Shield, which was struck down by the European Court of Justice in 2020.

The Commission insists that a recent executive order signed by US President Joe Biden that imposed new measures on the transfer of data between the regions provided adequate privacy protections to European citizens.

While Brexit means the deal does not affect international data transfers between the UK and US or the UK and EU, it means global companies can now move data safely under to the new regime, dubbed the EU-US Data Privacy Framework.

For the past three years, companies including Meta, Amazon, Google, Experian, Acxiom, LinkedIn and Microsoft have had to rely on standard contractual clauses (SCCs) as a legal mechanism to transfer data from the EU to the US.

EU commissioner for justice Didier Reynders said: “I have worked tirelessly with my US counterparts to address the concerns identified by the Court of Justice, and ensure that technological advances do not come at the cost of Europeans’ trust. But as close like-minded-partners, the EU and the US could find solutions, based on their shared values, that are both lawful and workable in their respective systems.”

However, privacy campaigners have been swift to condemn the agreement.

Austrian lawyer Max Schrems, whose legal action led to the demise of both Privacy Shield and its predecessor Safe Harbour in 2015, said: “They say the definition of insanity is doing the same thing over and over again and expecting a different result. Just like Privacy Shield, the latest deal is not based on material changes but by political interests.”

The first review of the deal is set to take place within one year.

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