- eco welcomes the treaty on transatlantic data transfer
- Privacy Shield finally restores companies’ legal certainty
- New data protection treaty has significantly higher level of data protection
It was long-awaited good news for business: On 12 July 2016, the so-called Privacy Shield came into effect, after the Member States gave the European Commission the green light. eco – Association of the Internet Industry welcomes the European Commission’s agreement with the US after drawn-out talks on a new agreement for the transatlantic transfer of personal data.
“Finally companies who depend on data flows with the US have a legal basis for doing so”, Oliver SĂĽme, eco Director Policy & Law, stated. “Such legal certainty was lacking for the last few months.”
Privacy Shield finally restores companies’ legal certainty
The invalidation of the previous treaty, Safe Harbor, lead to great uncertainty in the business world. After a provisional regulation ran out at the end of January this year, data protection authorities have already fined a number of companies. The new legal framework needs to be communicated and explained well to businesses, as, in particular, smaller companies need clarification.
The improvements negotiated since the first draft of the Privacy Shield treaty was presented at the end of February include the obligation to delete personal data once the purpose for which it has been collected has been fulfilled. The Ombudsman will also now be independent of US secret services. US secret services still have access to data, but only when certain conditions are fulfilled. An annual review of the system is also foreseen.
New data protection treaty has significantly higher level of data protection
Critics assume that the new agreement will be brought before the European Court of Justice (ECJ). The previous agreement, Safe Harbor, was declared void in October 2015, as the personal data of European Internet users was not adequately protected in the US against access by the authorities. The European Commission has kept closely to the requirements of the ECJ this time to avoid this treaty from also being invalidated. “The Privacy Shield has a significantly higher level of data protection in comparison to the old Safe Harbor agreement. This is secured by various mechanisms, and national security services are also bound by the treaty. Even if the ECJ still calls for further improvements, there is finally legal certainty again,” Süme proclaimed.
