EU-US Data Transfers at Risk Under Trump
EU-U.S. data transfers were problematic and under constant risk after the Court of Justice of the European Union (CJEU) declared the EU-US Safe Harbor framework void. The Privacy Shield – the EU-US data transfer framework that followed – had a similar fate.
The situation regarding EU-U.S. data transfers has reached an important point with the introduction of the Transatlantic Data Privacy Framework (TADPF). Established in July 2023, the TADPF allows European businesses to transfer personal data to U.S. companies despite existing concerns over U.S. surveillance laws. The European Commission justified this framework by citing executive guarantees and oversight mechanisms like the Privacy and Civil Liberties Oversight Board (PCLOB), which are not codified in U.S. law. Critics argue that these assurances are precarious and could be easily revoked by a future U.S. administration, casting doubt on the stability of the framework.
Legal experts, including Max Schrems, have voiced strong concerns about the TADPF’s foundation. The reliance on executive orders and diplomatic assurances rather than solid legislative protections raises questions about the long-term viability of the agreement. Recent developments, particularly with the change in U.S. presidential administration, could jeopardize the framework, leaving EU businesses in a precarious legal position regarding data transfers. The potential for the TADPF to dissolve rapidly underscores the risks associated with relying on non-legislative measures.
The European Commission finds itself in a challenging situation. If it swiftly annuls the TADPF, it risks a backlash from U.S. tech giants and could provoke tensions with the new U.S. administration. Conversely, failing to act could leave EU businesses unprepared for a sudden shift in U.S. policy that renders data transfers illegal. The Commission’s credibility and its relationship with both U.S. tech companies and EU member states are at stake as it navigates this complex landscape.
As the legal landscape evolves, EU businesses must prepare for potential disruptions. While the TADPF remains in effect for now, organizations are advised to develop contingency plans, including the option of hosting data within Europe. The future of transatlantic data transfers hangs in the balance, with significant implications for both EU and U.S. companies involved in data processing and storage.
Source: US Cloud soon illegal? Trump punches first hole in EU-US Data Deal.
