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Court ruling on EU-US data transfers sends mixed signals to business

16 Jul 2020
All Committees
Digital Economy

Brussels, 16 July 2020 – The American Chamber of Commerce to the EU (AmCham EU) acknowledges that the Court of Justice of the European Union has upheld the validity of standard contractual clauses (SCCs). Businesses and economies rely on the free flow of data to provide valued services to European consumers. SCCs are for many businesses the most accessible and stable means to transfer data outside of the EU. Today’s ruling delivers judicial endorsement of the important role SCCs play in providing adequate safeguards for EU citizens.

However, AmCham EU is concerned by the uncertainty created by the Court’s decision to invalidate the Privacy Shield mechanism for data transfers between the EU and the US. Over 5,000 small and large companies rely on the Privacy Shield to transfer personal data across the Atlantic. Commenting on the ruling, Susan Danger, CEO, AmCham EU, said: ‘We need the US government and the European Commission to work together swiftly with industry and all stakeholders to provide a sustainable mechanism for transatlantic data transfers. Business requires practical guidance to ensure an uninterrupted flow of data with minimal impact on trade’. She went on to say: ‘Our members continue to work diligently to adhere to EU data protection laws.’

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