The European Commission has today adopted the Privacy Shield. The Privacy Shield is intended to provide a framework for EU-US data transfers.
What is the Privacy Shield?
European data protection law restricts the transfer of personal data outside the European Economic Area (EEA) unless the country to which the data is transferred ensures an adequate level of data protection. The Privacy Shield is a mechanism for overcoming this restriction and legitimising the transfer of personal data to some US companies.
Why do we need the Privacy Shield?
Until 6 October 2015, over 4,000 US companies relied on the Safe Harbour regime to legitimise the transfer of personal data to the US. The Safe Harbour regime was declared invalid by the Court of Justice of the EU (CJEU) on 6 October 2015. The Privacy Shield will replace the Safe Harbour regime.
After the CJEU’s ruling many US companies turned to the Model Contractual Clauses to legitimise their transatlantic data transfers. The approval of the Privacy Shield will be welcomed by multinational companies, particularly as the Irish Data Protection Commissioner recently sought a referral to the CJEU to determine the legal status of data transfers under Model Contractual Clauses. However, Model Contractual Clauses remain a valid method of transatlantic transfer unless declared invalid by the CJEU, which may not be determined for up to another two years.Continue Reading European Commission Adopts Privacy Shield