Intellectual Property, Information Technology & Cybersecurity

Top European Union Court Invalidates EU-U.S. Privacy Shield Framework for Cross-Border Data Transfers

The Court of Justice of the European Union issued a landmark ruling on Thursday, July 16 that could immediately affect businesses in the United States by challenging data transfer arrangements that are currently in place for cross-border sharing of information between U.S. and EU companies.

The CJEU, the EU’s highest court, struck down the EU-U.S. Privacy Shield framework, which was established in 2016 as a mechanism for companies to transfer data between the EU and the U.S. after the CJEU struck down the predecessor Safe Harbour framework in 2015. Effective immediately, Privacy Shield is not a valid mechanism for data transfers between the EU and the U.S.

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