On July 5, 2018, the European Parliament voted to suspend the
EU-U.S. Privacy Shield Framework (Privacy Shield), an agreement
between the United States and the European Union regarding the
obligations of U.S.-based companies to protect Europeans'
personal data. The Parliament's resolution calls for the
European Commission (the executive arm of the EU) to suspend the
existing EU-U.S. data-sharing deal "unless the U.S. is fully
compliant" with its terms by September 1, 2018, the date of
the Privacy Shield's next annual review.
The EU's call to suspend the Privacy Shield now casts doubt
on the viability of one of the primary mechanisms for U.S.
corporations to ensure compliance with EU data privacy law. In
addition, its passage, just six weeks after enhanced privacy
protections went into full effect under the new General Data
Protection Regulation (GDPR), may signal enhanced EU privacy
enforcement efforts against U.S. organizations.
