After the Court of Justice of the European Union declared the
EU-U.S. Safe Harbor Framework invalid in October 2015,
multinational companies with employees in the EU are facing the
question how to legally transfer personal data. Current
developments in the process of the proposed EU-U.S. Privacy Shield
result in further uncertainty for companies relying on
transatlantic data flows.
The EU-US Privacy Shield which is meant to regulate the transfer
of personal data from Europe to the United States as a replacement
to the Safe Harbor Framework was recently called into question by
the Article 29 Working Party, an influential committee of the EU
privacy regulators.
The Working Party is of the opinion that the current draft of
the Privacy Shield will not provide adequate protection for
personal data transferred to the US. It has expressed concern about
commercial aspects as well as access by public authorities to data
transferred under the Privacy Shield.