US and EU Reach Data Sharing Deal for Big Tech Companies
In a significant development, the United States and the European Union have agreed on a new data-sharing pact that allows European data to be stored in the US. However, privacy campaigners are expected to challenge this agreement. The EU-US Data Privacy Framework permits US companies like Facebook and Google to operate under certain privacy obligations.
As part of the privacy obligations, these companies must delete personal data when it is no longer needed for the intended purpose and ensure the continuity of protection when sharing personal data with third parties. In case of mishandling data, EU residents can seek recourse through an independent dispute resolution mechanism and an arbitration panel at no cost.
EU president Ursula von der Leyen stated that the new framework will establish safe data flows for Europeans and provide legal certainty to companies on both sides of the Atlantic. She further mentioned that the US has made unprecedented commitments to establish this new framework following the agreement reached with President Biden last year, emphasizing the importance of trust and shared values.
The agreement primarily addresses concerns regarding the sharing of European data with US public bodies and law enforcement agencies. Access to data will be limited to what is considered necessary and proportionate for protecting national security. Additionally, EU individuals will have access to an independent and impartial redress mechanism, including a newly created Data Protection Review Court (DPRC) that will investigate and resolve complaints autonomously.
The deal has received widespread acclaim. Alexandre Roure, public policy director of the Computer & Communications Industry Association (CCIA), called it a major breakthrough and highlighted the certainty it brings to companies and organizations of all sizes on both sides of the Atlantic, allowing for the transfer of personal data from the EU to the US.
However, Max Schrems, who has been challenging previous data agreements, plans to appeal the decision. He argues that despite the new, robust, and effective claims, there has been no substantive change in US surveillance law. Schrems hopes to take the matter back to the European Court of Justice early next year and is urging the court to suspend the deal in the interim, although the prospects of this happening are slim.
The European Commission has announced that it will regularly review the agreement to ensure that the necessary measures are in place and that US law is effectively implemented as intended, particularly within the first year.
This news signifies a significant step towards data privacy and protection for both the US and the EU. The agreement aims to establish an effective framework that safeguards the rights of EU residents while facilitating the seamless flow of data for businesses on both sides of the Atlantic. The periodic reviews will serve as an essential accountability mechanism to monitor the implementation and effectiveness of the agreement.
It is important to note that this update will likely have far-reaching implications for existing and future data-sharing agreements involving big tech companies. The balance between individual privacy rights and national security concerns continues to be an ongoing challenge, and opinions on this latest agreement remain divided. Nonetheless, this development marks a crucial milestone in the ongoing efforts to protect personal data and preserve the trust of individuals in the digital age.
