The Logical Conclusion to an Illogical Conclusion: Schrems May Forbid Data Commerce from the EU to the US

The Logical Conclusion to an Illogical Conclusion: Schrems May Forbid Data Commerce from the EU to the US

The world just received the newest pronouncement from the EU Court of Justice, in a decision known as Schrems II, and the legal opinion extends the data war declared on the United States in the first Schrems decision. Interpreting these decisions together, European privacy regulators are beginning to suggest that there will be no practical manner of transferring EU to the US that meets EU data privacy requirements.


If the Schrems II decision truly leads to a stoppage of data traffic from Europe, 1) this would be a logical conclusion to the dangerous, unnecessary and unprincipled arguments asserted in Schrems I, and 2) it could be disastrous to commerce between two of the world’s largest trading partners.


The Current Decision. Schrems II invalidated the EU/US Privacy Shield program that many US companies use to demonstrate compliance with EU data laws, leaving a scant few options within the control of U.S. companies wishing to serve EU customers – not all of them practical. And the court in Schrems II even raised significant questions on the legally authorized methods of transfer that remained.


Many company data transfers from the EU to the US are effectuated under the Standard Contract Clauses approved for foreign data access by the EU. While the court in Schrems II upheld these clauses as valid, it also threw a wrench in the works, demanding that exporting parties must account for the relevant aspects of the data importer’s legal system, in particular any access by public authorities to the data transferred. If the exporter cannot guaranty a level of data protection that would be approved by the EU, the ex ..

Support the originator by clicking the read the rest link below.