EU companies face continued uncertainty over U.S. data transfers despite a new agreement.
Potential for further appeals looms over the EU-US data transfer framework.
The recent agreement on EU-US data transfers might not be the final word, as campaigners have already signaled that further appeals are likely. This mirrors past challenges to similar frameworks like Safe Harbour and Privacy Shield, which also faced legal scrutiny on comparable grounds. The ongoing legal wrangling means the new framework could still be overturned.
This situation leaves many businesses in a state of flux. Without a clear and stable agreement, EU companies would be forced to create complicated contracts with their U.S. suppliers. These contracts would need to impose strict limitations on data processing and handling for each individual transfer. Such a process is not only costly and time-consuming but also might not guarantee compliance with legal standards in real-world scenarios.
Max Schrems, the lawyer who initiated the initial complaint against previous data transfer mechanisms, continues to advocate for stronger privacy protections through his NGO, None of Your Business (NOYB). Schrems believes that the Court’s recent ruling is still open to appeal, suggesting that the debate over transatlantic data flows is far from over. Companies are eager for a resolution to this confusing period, but it may be premature to declare victory.
