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JUL 16, 2020 | US | EUROPEAN UNION

US Companies Left Scrambling After EU Data Transfer Pact Dies

Bloomberg Law, July 16, 2020

By Daniel Stoller

Thousands of US companies will have to rethink how they move data out of the EU after the bloc’s top court invalidated the EU-US Privacy Shield data transfer pact.

The Court of Justice of the European Union Thursday invalidated the data transfer mechanism that allowed thousands of companies to self-certify to send data from the European Union to the US. The court allowed businesses to continue to rely on standard contractual clauses to move data out of the bloc.

“The good news is that SCCs remain valid,” said Victoria Espinel, CEO and president of BSA | The Software Alliance. “But today’s Privacy Shield decision will create challenges for more than 5,300 businesses, 70 percent of which are SMEs, across a range of sectors at a time when the ability to send data abroad is crucial to the economic recovery from COVID-19.”

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Original Posting: https://news.bloomberglaw.com/privacy-and-data-security/u-s-companies-left-scrambling-after-eu-data-transfer-pact-dies

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