EU/U.S. Data Transfers: New Privacy Shield – How Does It Look and What Happens Next?

The EU is acting at breakneck speed to fill the legal gap that the European Court of Justice (ECJ) created in October, invalidating the Safe Harbor Agreement for EU/U.S. data transfers. EU Justice Commissioner Vĕra Jourová reported on 1 February 2016 to the European Parliament’s Committee on Freedoms and Human Rights (Civil Liberties, Justice, and Home Affairs, or LIBE) on the state of the negotiations with the U.S., stating that an agreement was “imminent.” A few hours later, the European Commission already issued a press statement touting an agreement “in principle” on a “Privacy Shield,” slated to replace the Safe Harbor that more than 4,000 U.S. companies had been using for over 15 years.