The European Union and the United States have ratified a new transatlantic agreement to guarantee the privacy of personal information.
Named the EU-U.S. Data Privacy Framework, it is set to deliver comparable protection to the stringent European standards declared by the EU executive commission.
This new pact simplifies the safe transfer of personal data from Europe to the U.S. without extra security.
U.S. President Joe Biden and European Commission President Ursula von der Leyen initiated the deal in October. They aimed to resolve the protracted dispute over the safety of European citizens’ data held by tech companies in the U.S.
The signing of this pact comes after the rejection of two previous data transfer agreements.
Potential Respite for Tech Giants
According to EU Justice Commissioner, Didier Reynders, personal data can now effortlessly and securely migrate from the European Economic Area to the United States without additional approvals or conditions.
This move is anticipated to ease the long-standing tensions between Washington and Brussels. Besides, it could bring respite to tech behemoths like Google and Meta, which had been grappling with uncertainties over using European data for targeted ads.
U.S. intelligence agencies’ access to data is confined to what is deemed “necessary and proportionate” for national security.
However, Max Schrems, the European privacy advocate who previously challenged data handling practices, expressed skepticism towards the new agreement. Schrems initiated legal proceedings over misusing his Facebook data following Edward Snowden’s disclosures in 2013.
He criticized the pact for not addressing fundamental issues and vowed to bring this case to the European Court of Justice by the end of the year.
Despite Schrems’ disapproval, the framework pledges reinforced protections against data misuse and offers multiple avenues for redress.
A newly established Data Protection Review Court will handle complaints from Europeans suspecting unauthorized access to their data by U.S. authorities. According to Reynders, the threshold for lodging complaints will be kept “very low.”
Tech Industry Hails the Move
The business community, especially tech giants, welcomed the decision. Alexandre Roure, Public Policy Director at the Brussels office of the Computer and Communications Industry Association, expressed relief.
This is a breakthrough… companies and organizations of all sizes on both sides of the Atlantic finally have the certainty of a durable legal framework that allows for transfers of personal data from the EU to the United States.Alexandre Roure
The signing of this pact comes at a pivotal moment. This is especially relevant as Meta Platforms faced a $1.3 billion EU privacy fine in May for transferring data across the Atlantic using invalid legal tools.
In their recent earnings report, Meta warned that the absence of a legal framework for data transfers could compel them to halt their services in Europe. This may lead to a significant business impact.
With the new EU-U.S. Data Privacy Framework in place, such risks are expected to be mitigated, marking a significant milestone in transatlantic data privacy regulation.
