Privacy Shield invalid – Data transfer from the EU to the US is now illegal
The European Court of Justice has now declared the Eu-US Privacy Shield Agreement invalid.
The claims in the area of data protection between the EU and the USA are incompatible – the European Court of Justice deletes the legal basis for data exchange with the US.
The level of data protection in the US is inadequate – this is the reason for the decision that companies are no longer allowed to process or store personal data by American companies.
What is to be done now?
Some companies rely on standard contractual clauses to process data in the US despite everything. The European Court of Justice has not invalidated them per se, but the use will be based on large-scale obligations and verifications on undertakings relying on such clauses.
For example, when applying these clauses, companies must verify that the level of data protection is actually being applied before any data transfer. This would not be possible in the context of the United States, according to the European Court of Justice. If companies fail to comply with the standard contractual clauses in practice, the transfer of data must be suspended immediately.
Call and recommendation of data protection experts
Instead of working with an American company, the safest option is to rely on cooperation with a German provider that processes the data within the EU or even within Germany. This avoids complex legal steps and ensures maximum security in the handling of personal data.
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