A framework for regulating transatlantic exchanges of personal data for commercial purposes between the European Union and the United States.
Description
The Privacy Shield was established to facilitate the transfer of personal data from European Union (EU) countries to the United States while ensuring that the data is adequately protected. It was designed to replace the Safe Harbor framework after it was invalidated by the European Court of Justice in 2015. Companies that participate in the Privacy Shield program must adhere to specific privacy principles, including transparency, accountability, and data security. This framework aimed to reassure EU citizens that their data would be handled with care and respect for privacy rights. However, in July 2020, the Privacy Shield was also struck down by the European Court of Justice due to concerns about U.S. government surveillance practices. This ruling left many businesses in a state of uncertainty regarding data transfers, prompting a search for new solutions to comply with EU data protection regulations, such as the General Data Protection Regulation (GDPR). As of now, organizations are exploring alternative frameworks and legal mechanisms for international data transfers.
Examples
- The Privacy Shield allowed major tech companies like Google and Facebook to operate while transferring user data from Europe to the U.S.
- Companies like Salesforce used the Privacy Shield to ensure compliance with EU data protection laws while serving European clients.
Additional Information
- The framework included mechanisms for resolving disputes and providing recourse for EU citizens whose data was mishandled.
- Following the invalidation of the Privacy Shield, many companies have turned to Standard Contractual Clauses (SCCs) as an alternative method for data transfer.