The European Commission has announced a pact with the United States that enables easier legal transfer of personal data between the two regions. The deal has been welcomed by President Joe Biden and EU officials, as it ensures that tech giants such as Meta (formerly Facebook), Google, and others can continue sharing information with the US. However, data privacy activists have expressed their intention to challenge the agreement in court, raising concerns about US intelligence agencies’ access to European data.
Previous attempts to establish a legal framework for US-EU data sharing were invalidated by European courts due to privacy concerns. The newly announced pact aims to address European concerns regarding the sharing of personal information with US intelligence agencies. Under the agreement, Europeans will have the right to object if they suspect that their data has been collected by American intelligence. A Data Protection Review Court, composed of US judges, will be established to handle such claims.
The EU-US Data Privacy Framework, set to take effect on Tuesday, also commits to collecting only “necessary and proportionate” data. EU Justice Commissioner Didier Reynders hailed the agreement as “robust” and emphasized that personal data can now flow freely and securely from Europe to the US.
However, the non-profit organization NOYB (None of Your Business), led by privacy activist Max Schrems, has vowed to challenge the decision. Schrems argues that the current agreement does not meet the requirements set by the European Court of Justice and insists on changes to US surveillance laws to ensure compliance.
In October 2022, President Biden issued an executive order that mandated increased data collection protections by US intelligence agencies, taking into account national security concerns. The order played a significant role in paving the way for the final agreement.
While the deal is seen as a step forward in facilitating data transfers between the EU and the US, the lenient privacy laws in the US continue to be a point of contention. In May, the EU imposed a $1.3 billion (£1 billion) fine on Meta (formerly Facebook) and ordered the company to cease transferring European users’ data to the US. Meta has warned that without a legal framework for data transfers, it may be forced to stop offering its products and services in Europe.
