The European Union Just Restricted Data Transfers to the United States, Dealing a Blow to Tech Companies
JUL 16, 2020 | US | EUROPEAN UNION
The European Union Just Restricted Data Transfers to the United States, Dealing a Blow to Tech Companies
Washington Post, July 16, 2020
By Cat Zakrzewski
The European Union's top court ruled that data of EU residents is not sufficiently protected from government surveillance when it is transferred to the United States. That could have stark implications for global commerce, especially smaller businesses.
The court struck down a key data transfer agreement known as Privacy Shield because it did not adequately uphold EU law. The move could force thousands of companies to reconsider how they move data from Europe, and it will prompt new negotiations between the United States and Europe over how to store Europeans' data on US soil.
Companies blasted the move as the economy is struggling in the wake of the coronavirus. "This is an unwelcome development at a time when businesses on both sides of the Atlantic are focusing on recovering from the economic impacts of COVID-19 and are increasingly relying on data-driven tools and services to do so,” said Thomas Boué, director general of policy—EMEA at BSA, another tech trade group.
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