The EU on Monday came up with a transatlantic pact with the US for sharing and storing it’s citizens’ data safely on US servers for processing.
This new privacy framework is set to replace the existing and temporary legalities enacted after the fall of Privacy Shield three years ago. Aside from dictating new rules, the framework also forms a new Data Protection Review Court to resolve complaints and make independent investigations.
A New Rule Book For Processing EU Data
The European Union is one of the most challenging places to do business, as the consortium has several restrictions for foreign firms, especially regarding data-sharing practices. The US companies have suffered a lot, with tech giants paying billions of dollars in fines for breaking the rules.
Well, to ease things up, the EU has come up with a new privacy framework to allow US companies to store their EU citizens’ data safely. This comes three years after the fall of Privacy Shield, which the EU said failed to protect the EU data going into US intelligence hands.
International data flows underpin the modern economy. We welcome the new Data Privacy Framework, which will safeguard the goods & services relied on by people and businesses on both sides of the Atlantic. Congratulations to all involved! https://t.co/fmBj2oRPWW
— Nick Clegg (@nickclegg) July 10, 2023
Well, the new privacy framework is yet to be accepted by the EU’s top court before becoming law. And once it does, it’ll limit the amount of overseas data that US intelligence can gain access to and even set up a Data Protection Review Court (DPRC) to “independently investigate and resolve complaints”. The court can even order the companies to delete the data once it’s purpose is served.
Further, the privacy obligations that it sets for US companies also apply to the third parties that they share the collected data with. It’s interesting to see how the EU court upholds this new framework, as it struck down the past two policies brought by parliament, citing their inability to work as intended.
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