EU and US Announce New Deal On Trans-Atlantic Data Privacy Framework

On March 25, 2022, the European Commission (EC) and the United States (US) announced reaching a new deal in principle on cross-border data flows. The new deal is aimed to establish a legal mechanism, referred to as the Trans-Atlantic Data Privacy Framework, for European Union (EU) personal data transfers to the US. It is intended to replace the EU-US Privacy Shield invalidated by the Court of Justice of the European Union in July 2020, as previously reported by the E-TIPS® Newsletter here.

Under the Trans-Atlantic Data Privacy Framework, the US has committed to:

• Strengthen the privacy and civil liberties safeguards governing US signals intelligence activities to ensure such activities are only undertaken where necessary and are proportionate to defined national security objectives;
• Establish a new redress mechanism that includes an independent Data Protection Review Court with authority to adjudicate claims by EU individuals and direct remedial measures; and
• Enhance its existing oversight of signals intelligence activities to ensure compliance with limitations on surveillance activities.

According to the statement released by the White House, the deal “will enable the continued flow of data that underpins more than $1 trillion in cross-border commerce every year, and will enable businesses of all sizes to compete in each other’s markets”. This news potentially signals an end to the legal uncertainty for many businesses by offering another option when transferring personal data from the EU, together with EU’s Standard Contractual Clauses and other means.

As the particulars of the Trans-Atlantic Data Privacy Framework are not yet known, the US and EC will work on translating their preliminary agreement into a final legal format to be adopted by both sides.

Summary By: Anna Troshchynsky