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Another major setback for EU-U.S. data transfer in “Schrems II”

Suzanne Gainey
Data Points Blog
July 2020

Charlotte Privacy and Data Security Associate Suzanne Gainey’s Data Points blog titled, “Another major setback for EU-U.S. data transfer in “Schrems II”, was published on July 24.

The article

On July 16, 2020, the Court of Justice of the European Union (“CJEU”) issued its judgment in the “Schrems II” case, cautiously upholding Standard Contractual Clauses (SCCs) and invalidating the popular EU-U.S. Privacy Shield.  The judgment is the second major triumph affecting transatlantic commerce for Austrian privacy activist, Max Schrems.

Under the EU’s General Data Protection Regulation (“GDPR”), an organization may only transfer individuals’ personal data to non-EU countries for processing if the European Commission determines the third country “ensures an adequate level of protection”.  Previously, the European Commission had recognized three methods for lawful transfer of EU personal data to the U.S.: (1) a voluntary arrangement by which U.S. organizations self-certify compliance with certain privacy principles (Privacy Shield); (2) standard contractual clauses between the data controller and data processor, based on approved model clauses (SCCs); and (3) similar commitments adopted in binding non-contractual rules applicable solely within the corporate group (Binding Corporate Rules).

To view the complete blog article, please click here.