EU-US Privacy Shield: Safe For Another Year—But Trouble Lies Ahead

Thousands of European and US companies will have been relieved by the recent announcement that the EU-US Privacy Shield (the framework for regulating transatlantic exchanges of personal data) is secure for another year.

However, it may be premature to rejoice: the EU Commission's review highlighted two key issues:

the continued reluctance by the US to institute fundamental safeguards for individuals' personal data; and the imminent need to appoint an independent ombudsman. Coupled with the impending European court ruling in Schrems II - is the Privacy Shield's demise only a matter of time?

US National Security vs. European Right to Privacy

The recent review by the EU Commission highlighted that the United States' stance (both legally and politically) toward the collection of personal data in the interests of national security has not significantly changed since the Privacy Shield's introduction and no new guarantees have been introduced to safeguard individuals rights.

The Commission noted that the potential impact on and tension with the Privacy Shield from the enactment of the CLOUD Act (obliging US service providers to comply with US orders to disclose data, regardless of its storage location) and the reauthorisation of FISA (the NSA's warrantless surveillance programme, allowing access to communications of foreigners outside the US).

Fundamentally, this approach of compromising data protection safeguards in the interests of national security was a key reason for the European courts striking down the original EU-US data transfer framework, Safe Habor, in 2015. If the US continues down this path, and the European court follows the principles it set out for striking down Safe Harbor, the Privacy Shield could find itself in dangerous waters.

Ombudsman To The Rescue?

Most notably, despite last year's...

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