U.S., EU Reach New Pact On Legal Transfer Of Personal Data

Trans-Atlantic Data Privacy Framework Pact Overview: 

• Who: The United States and European Union have reached a new pact called the Trans-Atlantic Data Privacy Framework. 
• Why: The new pact is meant to replace the Privacy Shield, which regulated and allowed the legal transfer of personal data between the United States and the EU.
• Where: The new pact would affect individuals and businesses in the United States and the EU.

Officials in the United States and the European Union announced a new pact last week that will once again allow for the legal transfer of personal data.

The United States has promised to update its privacy and surveillance policy as part of the agreement; however, questions remain about whether it will be enough to allow the deal to be approved, Law360 reports.

President Joe Biden and European Commission President Ursula von der Leyen announced the new pact, called the Trans-Atlantic Data Privacy Framework, at a press conference in Brussels on Mar. 25.

“This framework underscores our shared commitment to privacy, to data protection and to the rule of law,” Biden said. 

Multinationals had previously been able to transfer personal data between the United States and EU through what was called the Privacy Shield; however, that pact was reversed in July 2020 by the Court of Justice of the European Union, Law360 reports.

The Biden administration has vowed that the new pact addressed concerns about consumer redress and government surveillance, which caused the Privacy Shield to ultimately be struck down. 

In addition to strengthening civil liberty and privacy safeguards for U.S. intelligence activities, the new pact also includes a multilayer redress mechanism, Law360 reports.

U.S. Assures It Won’t Disproportionately Access EU Citizens’ Data

The changes were put in place to assure that the United States will not disproportionately or unnecessarily access the data of EU citizens.

An independent Data Protection Review Court has also been put in place to help ensure the pact is being appropriately followed, Law360 reports. 

“Today’s Trans-Atlantic Data Privacy Framework announcement between the United States and the European Union reflects our shared recognition of the importance of trusted data flows, which are critical to our continued economic recovery following the COVID-19 pandemic, as well as our common commitment to the rule of law and data protection,” U.S. Secretary of Commerce Gina M. Raimondo said in a statement. “By ensuring a durable and reliable legal basis for transAtlantic data flows, we have paved the way for a more inclusive digital economy that will benefit American consumers and small businesses alike.”

Businesses have welcomed the new pact with open arms since it will give them a more efficient way to transfer data, Law360 reports. 

On the other hand, there is concern that the proposed changes will not be enough to earn approval from the European Court of Justice. 

“This new solution will have to withstand the scrutiny of the supervisory authorities and the privacy activists that brought down the two previous ones,” Guillaume Couneson, a data protection partner at the law firm Linklater, told CNBC. 

Also this month, Biden signed a new law which requires operators of critical infrastructure to report cybersecurity incidents within 72 hours of them occurring. 

Do you believe the Trans-Atlantic Data Privacy Framework is a good deal between the United States and EU? Let us know in the comments!

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