EU gives green light on data transfer

A PACT underpinning billions of dollars of transatlantic data transfers won a green light from the EU yesterday after a first review to ensure Washington protects Europeans’ data stored on US servers.

The EU-US Privacy Shield was agreed last year after everyday cross-border data transfers were plunged into limbo when the EU’s top court struck down a previous data transfer pact in 2015 because it allowed US spies excessive access to people’s data.

The European Commission last month conducted its first annual review of the framework as it seeks to ensure the US lives up to its promises to better protect Europeans’ data when they are transferred across the Atlantic – failing which it could suspend the Privacy Shield.

The EU executive said it was satisfied the framework continues to ensure protection for Europeans’ personal data although it asked Washington to improve the way it works, including by strengthening the privacy protections contained in a controversial portion of the US Foreign Intelligence Surveillance Act (Fisa).

The conclusion will come as a relief to the 2 400 companies signed up to the scheme, including Alphabet’s Google, Facebook and Microsoft, especially since the Privacy Shield is being challenged in court by privacy activists.

The commission said the US Department of Commerce should be more pro-active in monitoring companies’ compliance with the privacy obligations in the framework.

“Transatlantic data transfers are essential for our economy, but the right to data protection must be ensured also when personal data leaves the EU. Our first review shows the Privacy Shield works well, but there is some room for improving its implementation,” EU justice commissioner Vera Jourova said.