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New challenges to transfers of personal data from the EU to the United States

Posted On: Jul 20, 2020   |   Posted By: Bruegel

On 16 July 2020, the Court of Justice of the European Union issued its judgment in a case that is widely referred as Schrems II , and the decision is a bombshell!
The US and the EU are the world's largest trading partners, and the transfer of personal data constitutes an important component and enabler for that trade. Those transfers are important, not only to US digital firms, but also to EU consumers who use their services, and to many EU and US businesses. The judgment eliminates or cripples two of the main mechanisms employed today to enable that data transfer. In the extreme case, this judgment could theoretically block those data transfers.
The judgment not only immediately invalidates Privacy Shield, but may also have the effect, once the dust has settled, of effectively blocking transfers of personal data to the USA using the popular mechanism of Standard Contractual Clauses.
This is the second time that transfers of personal data to the US were put at risk...

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