USCIB Urges US Government to Ensure Data Transfer in Light of Ruling by European Court of Justice

USCIB co-signed a multi-association letter to U.S. Commerce Secretary Wilbur Ross in response to a July 16 ruling by the European Court of Justice (CJEU) that invalidated the 2016 EU-US Privacy Shield framework governing the protection of transatlantic data flows.

The Privacy Shield plays a critical role for data transfers for over 5,300 U.S. companies, 70 percent of which are Small and Medium Enterprises (SMEs). These companies contribute significantly to the nearly $1.1 trillion in U.S. total trade in goods and services with the EU. Companies in the automotive, retail, hospitality, logistics, health care, manufacturing and human resource management fields are all certified to the Privacy Shield Program.

The multi-association letter urges the U.S. government to work collaboratively with EU counterparts “to develop a stable and sustainable mechanism for companies to transfer data between the EU and United States” and to ensure that EU regulators allow data transfers to continue while a new agreement is under discussion.

The letter further notes the urgent implications of the COVID-19 pandemic, which has required many American businesses to use remote services and rely upon the ability to move data across many borders.

The CJEU did, however, uphold the validity of the Standard Contractual Clauses (SCC) privacy protective mechanism for transferring data.

Staff Contact:   Barbara Wanner

VP, ICT Policy
Tel: 202.617.3155

Barbara Wanner directs USCIB’s work on information, communications and technology issues. She works with members and government officials on a wide range of international business issue that include advocating for the continuation of the multi-stakeholder model of Internet governance and for policies aimed at promoting the stability, openness and innovative flexibility of the Internet. She represents USCIB members’ interests in several international forums, including the UN, APEC and the OECD.
Read More

Related Content