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EU grants data transfer pact to US following tightening of US data protection standards

by Derek Andrews
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The European Fee issued an adequacy decision on Monday concerning knowledge transfers to the US. The choice implies that the US has formally adopted an sufficient knowledge safety commonplace for the EU to take part within the EU-US Data Privacy Framework. The choice eases the way in which for multinational firms working in each the US and the EU.

The EU defined the affect of the choice, stating:

[T]he United States ensures an sufficient stage of safety for private knowledge transferred from the EU to firms collaborating within the EU-U.S. Information Privateness Framework. With the adoption of the adequacy resolution, European entities are in a position to switch private knowledge to collaborating firms in the USA, with out having to place in place extra knowledge safety safeguards.

The US Division of Commerce can be answerable for implementing the newly designed framework. Particularly, they are going to oversee the method of certification of knowledge purposes and compliance monitoring.

The choice follows US President Joe Biden’s July 3 executive order, which established limitations on US intelligence businesses’ entry to foreign-origin knowledge. The chief order restricted the businesses’ entry to solely that knowledge which is deemed vital.

Beforehand, the switch of delicate knowledge from the EU to the US required the utilization of standard contract clauses. Beneath that system, even for a single entity, EU-based firms had been required to draft contractual agreements with US-based firms earlier than any knowledge could possibly be transferred.

The EU’s earlier try to ascertain a mechanism for the safe switch of knowledge, referred to as the Privacy Shield, was invalidated solely years after its implementation by the EU Court docket of Justice (ECJ) in 2020. The first motive behind the termination of the Privateness Defend was resulting from a battle between US surveillance laws and the person rights of EU residents. Beneath US regulation, authorities are granted broad access to international people’ private knowledge, which instantly contradicts provisions set forth within the EU’s General Data Protection Regulation (GDPR).

The adequacy resolution took impact instantly upon its adoption Monday. That stated, the European Fee intends to proceed to watch the efficacy of the brand new framework, which can be altered to incorporate extra operational restrictions, as deemed vital. The EU and the US are additionally at present weighing the institution of an neutral mechanism to deal with complaints from Europeans regarding the assortment of their private knowledge for nationwide safety functions.

Source / Picture: jurist.org

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