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August 01, 2016 | News August 2016 | EU Commission Approves EU-US Privacy Shield

On July 12, 2016, the European Commission issued an adequacy decision concerning the EU-US Privacy Shield, thereby finally approving the new framework for transatlantic data flows.

The Privacy Shield should become fully operational as of August 1, 2016, from when US companies will be able to certify with the US Department of Commerce.

The Privacy Shield has been designed to replace the Safe Harbor framework, declared invalid by the Court of Justice of the EU (“CJEU”) in October 2015.

The new arrangement provides for stricter data protection obligations applicable to companies processing personal data, better safeguards against the US government’s access to personal data, and provides data subjects (individuals) with several redress possibilities  in case of inadequate protection.

Even though the EU policymakers consider the Privacy Shield a good deal ensuring a high level of privacy for the individuals whose data are transferred from the European Union to the United States and providing legal certainty for companies whose business depends on the transatlantic flow of personal data, privacy advocates suggest that it is only a matter of time before the Privacy Shield is challenged before the CJEU. In their opinion, the agreement does not address all of the CJEU’s comments and stipulations.