EU-U.S. Data Privacy Framework

July 11, 2023

The European Union has given its approval for a new data deal with the United States, marking an important milestone for tech giants like Facebook and Google. This decision comes after three years of uncertainty caused by the invalidation of the previous data agreement, Privacy Shield, by the EU’s top court.

Recognition of Adequate Data Protection

The European Commission has formally recognized the U.S. as a country providing sufficient protection for Europeans’ personal data. This recognition, known as an adequacy decision, is made under the General Data Protection Regulation (GDPR) – a landmark privacy law.

EU-U.S. Data Privacy Framework

The new deal, known as the EU-U.S. Data Privacy Framework, paves the way for lucrative transatlantic data exchanges. It addresses the concerns raised by the previous agreement’s invalidation, which centered around the extensive access of U.S. intelligence agencies to Europeans’ personal data.

Significance for Transatlantic Economic Activities

Transatlantic data flows play a crucial role in supporting economic activities, amounting to an estimated $7.1 trillion. The approval of the new data deal is expected to strengthen economic ties between the EU and the U.S., benefiting businesses and individuals on both sides of the Atlantic.

Ongoing Scrutiny and Review Mechanism

The European Commission will review the EU-U.S. Data Privacy Framework within a year and subsequently every four years. This periodic assessment aims to ensure the effectiveness of privacy safeguards provided by the U.S. for European citizens.

Continued Debate and Opposition

While the deal has gained formal backing from the majority of EU countries, it still faces opposition from the European Parliament. Critics argue that the new pact allows some bulk-collection of personal data and lacks sufficient privacy protections.

Balancing Surveillance and Privacy

The new framework requires U.S. intelligence agencies to balance factors that align with the case law of the EU Court of Justice when accessing data. This emphasizes the need for surveillance practices to be proportionate and necessary for national security.

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