European Commission Adopts EU-US Privacy Shield

On 12 July 2016, the European Commission adopted the EU-US Privacy Shield (the "Privacy Shield"), the new framework for transatlantic exchanges of personal data replacing the Safe Harbour agreement. The adoption follows a positive vote by the Member States' representatives in the Article 31 Committee on 8 July 2016. US companies can sign up to the Privacy Shield as from 1 August 2016. Once a US company is certified under the new scheme, transfers to this company from the EU will be permitted under Directive 95/46/EC (the "Data Protection Directive").

Under the Data Protection Directive, personal data must not be transferred to a recipient outside the EEA unless such a recipient is located in a country which is regarded to provide an "adequate" level of protection. The decision of 12 July 2016 declares that US companies registered under the Privacy Shield qualify for "adequate" protection status under the Data Protection Directive.