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ARTICLE · 20 OCTOBER 2017

Looming Ruling On EU Data Transfer Rules Carries Potentially Serious Implications

Jones Day
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The European Court of Justice ("ECJ") is to rule on the validity of EU Standard Contractual Clauses used by companies to transfer personal data outside of the European Union...

European UnionCorporate/Commercial Law
Jörg Hladjk
Jörg Hladjk
Undine Von Diemar
Undine Von Diemar
Daniel McLoon
Daniel McLoon
Mauricio Paez
Mauricio Paez
Jonathon Little
Jonathon Little
Todd McClelland
Todd McClelland
Olivier Haas
Olivier Haas
Lucia Stefania Stoican
Lucia Stefania Stoican
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In Short

The Situation: The European Court of Justice ("ECJ") is to rule on the validity of EU Standard Contractual Clauses used by companies to transfer personal data outside of the European Union, at the request of Ireland's High Court.

The Impact: If the ECJ invalidates EU Standard Contractual Clauses used by thousands of firms each day to transfer personal data to third-party countries outside the European Union, it would have major disruptive effects for companies.

Ireland's High Court issued a key decision on October 3, 2017, referring a preliminary ruling to the ECJ, asking it to determine whether data transfer agreements based on EU Standard Contractual Clauses, used by businesses to transfer personal data, are in compliance with EU data protection law.

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