July 13, 2016•Update: July 17, 2016
By Barry Eitel
SAN FRANCISCO
The EU-U.S. Privacy Shield agreement was officially adopted Tuesday, with technology companies welcoming the data transfer deal.
The agreement follows nearly a year of uncertainty after a long-standing Safe Harbor agreement was invalidated by the E.U. almost nine months ago amid concerns about the U.S. government’s mass surveillance program, which was revealed in 2013 by former National Security Agency contractor Edward Snowden.
The Privacy Shield is aimed at preserving the safety of data between the EU. and U.S., regions that have very distinct regulations about data security.
The agreement places restrictions on how the U.S. government can access the data of European consumers and it sets up a system for Europeans who feel their data was monitored without cause.
The deal “will protect the personal data of our people and provide clarity for businesses,” Andrus Ansip, vice president for the EU’s Digital Single Market, said in a statement. “We have worked hard with all our partners in Europe and in the U.S. to get this deal right and to have it done as soon as possible. Data flows between our two continents are essential to our society and economy – we now have a robust framework ensuring these transfers take place in the best and safest conditions.”
Lauded by the American tech industry, the pact takes effect Tuesday and companies in the U.S. will be able to certify compliance on Aug. 1.
“Microsoft regards privacy as a fundamental right and we believe the Privacy Shield advances this right,” John Frank, Microsoft’s vice president of EU government affairs said in a statement. “This is an important achievement for the privacy rights of citizens across Europe, and for companies across all industries that rely on international data flows to run their businesses and serve their customers,” he added.
