EU and US sign new agreement to replace personal data with ‘privacy shield’ | Technology

“This framework underscores our shared commitment to privacy, data protection and the rule of law,” Biden said. According to Van der Leyen, the agreement will again enable “predictable and reliable data flows” between the EU and the United States and guarantee “protection of privacy and civil rights.” Both parties have not yet provided details of the agreement in terms of policy.

In July 2020, the United States and the European Union had to look for a new agreement after the European Court of Justice declared the then data sharing agreement invalid. According to the court, the so-called ‘privacy shield’ does not guarantee adequate protection of the privacy of European citizens. European judges have mainly criticized the far-sighted access of US intelligence services to European personal data.

The ruling is a major victory for Austrian privacy activist Max Schrems, who successfully challenged a data sharing agreement with the United States for the second time in court in 2015 after “safe port”.

The thousands of American companies that used the ‘privacy shield’, especially the big tech giants, were less set up. For example, Meta, the parent company of Facebook and Instagram, warned that it would be forced to leave Europe if legal uncertainty persisted.

Technology firms make more profit by processing personal data, and after a court ruling, had to resort to alternative solutions, which provide less legal guarantees. According to President Biden, the re-introduction of a solid and stable data transfer framework will help develop more than $ 7 trillion in economic ties with the EU.

Business Europe, the European entrepreneurial umbrella organization, speaks of “a great signal to business and the world at large.” “Legal commitment to data flows will encourage innovation, growth and job creation. It is a successful deal for companies on both sides of the Atlantic,” said CEO Marcus Bearer.

Shrems responded with less enthusiasm. “It looks like we’re doing another ‘shield of privacy’, especially in one case: politics over law and fundamental rights,” he tweeted. “It has already failed twice. What we are asking for is a ‘patchwork’ approach again, but there are no significant reforms on the US side. We will wait for the text, but my first guess is that it will fail again.”