The Safe Harbor Agreement that was implemented in 2000 between the US and EU contained principles that allowed companies (i.e. tech companies and other multi-national companies) to comply with EU data protection laws when moving data from Europe to the United States. US companies that process and/or store individuals' data may self certify that they adhere to 7 principles that comply with the EU's data protection laws.
The 7 principles include: notice, choice, onward transfer, security, data integrity, access, and enforcement. The initial Safe Harbor agreement was meant to be an interim agreement; however, it lasted approximately 15 years. A couple of years ago, EU and US regulators began negotiating an updated agreement to take into account how technology has changed over the years. Last October, before a new agreement was finalized, the current one was invalidated by the European Court of Justice via a compliant from Austrian privacy advocate Max Schrems. Mr. Schrems gained publicity several years ago for his privacy advocacy that was highlighted in the documentary Terms and Conditions May Apply when he demonstrated how much data Facebook was collecting about each of its EU users.
The 7 principles include: notice, choice, onward transfer, security, data integrity, access, and enforcement. The initial Safe Harbor agreement was meant to be an interim agreement; however, it lasted approximately 15 years. A couple of years ago, EU and US regulators began negotiating an updated agreement to take into account how technology has changed over the years. Last October, before a new agreement was finalized, the current one was invalidated by the European Court of Justice via a compliant from Austrian privacy advocate Max Schrems. Mr. Schrems gained publicity several years ago for his privacy advocacy that was highlighted in the documentary Terms and Conditions May Apply when he demonstrated how much data Facebook was collecting about each of its EU users.
Now that the deadline has passed, what comes next? According to The New York Times, the sides still have a lot of details to work out. Therefore, until a formal announcement is made it is premature to speculate on the next step. As I told LAW360 the other day, businesses need certainty regarding transatlantic data transfers and if an agreement is not forthcoming companies will need a Plan B.
If consumer groups file complaints as The New York Times indicated may occur, these issues may need to be adjudicated via the courts. At this point, uncertainty is the status quo and this may create unintended service disruptions for companies that transfer digital data between the continents. My hope is that an agreement is reached sooner rather than later that is flexible enough to account for future technology changes.
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