A new legal mechanism to allow for transfers of personal data between the EU and the U.S. is now advancing after an October 7th, 2022 Executive Order was issued by U.S. President Biden (the “Executive Order”). The new mechanism is referred to as the EU-U.S. Data Privacy Framework
The final version of the new standard contractual clauses (“SCCs”) were published by the European Commission on June 4, 2021. Many organizations that transfer or receive personal data originating in the European Economic Area (“EEA”) outside the EEA will be required to implement these SCCs with their customers, suppliers and affiliates by December 2022 to comply with the EU General Data Protection Regulation (“GDPR”). This is perhaps the most significant GDPR development since the passage of the GDPR. We had foreshadowed this impending development last week.
It has been reported that European Commission will publish the final versions of new forms of Standard Contractual Clauses (“SCCs”) shortly (even potentially within the next few days). The Commission published draft versions of these SCCs and the implementing Commission Decisions in December 2020. These new SCCs are, arguably, the most significant development in European data protection law since the coming into force of the EU General Data Protection Regulation (“GDPR”) in May 2018, which was three years ago this month. These new SCCs will replace prior versions of the SCCs, some of which date back to 2001 and pre-date the GDPR. We are closely monitoring developments in this area and will report on the new SCCs as soon as these are published. We expect the impact of these SCCs to be significant on organizations which are directly subject to the GDPR or which receive personal data from organizations that are subject to the GDPR.
Today, one month after the European Court of Justice decision that invalidated the Safe Harbor framework, the European Commission (the “Commission”) issued a Communication setting forth its position on alternative tools for the lawful transfer of personal data from the EU to the United States. The Commission also stated its objective to conclude negotiations with the U.S. government regarding the so-called Safe Harbor 2.0 within three months. This timeline dovetails with the Article 29 Working Party’s grace period, which continues until the end of January 2016.
Concurrent with the European Commission’s recent release of a new strategy to “unleash the potential of cloud computing in Europe,” the French Data Protection Agency (CNIL) issued 7 recommendations to assist companies to comply with French law when using cloud computing services.
The European Commission (the “EC”) has announced its anticipated comprehensive reform of EU data protection rules, intended to strengthen online privacy rights and boost Europe’s digital economy. The proposal is intended to update and modernize the principles enshrined in the 1995 Data Protection Directive. If approved, unlike the current rules which give each of the 27 member states of the EU (the “member states”) some flexibility as to how the 1995 Data Protection Directive is implemented in their jurisdiction, the new law would apply directly so that there would be an entirely uniform set of data protection standards across the EU.
Key changes include…