Biden signs executive order to protect data transfers between US, EU

European Council President Charles Michel, President of the European Commission, Ursula von der Leyen and US President Joe Biden meet inside EU -USA Summit in Brussels, Belgium on June 15, 2021.

Dursun Aydemir | Anadolu Agency | Getty Images

President Joe Biden signed an executive order to implement a brand new framework to protect the privateness of private data shared between the U.S. and Europe, the White House introduced on Friday.

The new framework fills a major hole in data protections throughout the Atlantic since a European court docket undid a earlier model in 2020. The court docket discovered the U.S. had too nice a capability to surveil European data transferred by way of the sooner system.

The court docket case, referred to as Schrems II, “created enormous uncertainty about the ability of companies to transfer personal data from the European Union to the United States in a manner consistent with EU law,” then-Deputy Assistant Commerce Secretary James Sullivan wrote in a public letter shortly after the choice. The final result made it so U.S. firms would wish to use completely different “EU-approved data transfer mechanisms” on an advert hoc foundation, creating extra complexity for companies, Sullivan wrote.

The so-called Privacy Shield 2.0 seeks to handle European issues of surveillance by U.S. intelligence businesses. In March, after the U.S. and EU agreed in precept to the brand new framework, the White House mentioned in a reality sheet that the U.S. “committed to implement new safeguards to ensure that signals intelligence activities are necessary and proportionate in the pursuit of defined national security objectives.”

The new framework will permit people within the EU to search redress by way of an unbiased Data Protection Review Court made up of members exterior of the U.S. authorities. That physique “would have full authority to adjudicate claims and direct remedial measures as needed,” in accordance to the March reality sheet.

Before a matter reaches the DPRC, the civil liberties safety officer within the Office of the Director of National Intelligence may also conduct an preliminary investigation of complaints. Its selections are additionally binding, topic to the unbiased physique’s evaluation.

The executive order directs the U.S. intelligence group to replace insurance policies and procedures to match the brand new privateness protections within the framework. It additionally instructs the Privacy and Civil Liberties Oversight Board, an unbiased company, to look at these updates and conduct an annual evaluation of whether or not the intelligence group has absolutely adhered to binding redress selections.

“The EU-U.S. Data Privacy Framework includes robust commitment to strengthen the privacy and civil liberties safeguards for signals intelligence, which will ensure the privacy of EU personal data,” Commerce Secretary Gina Raimondo instructed reporters Thursday.

Raimondo mentioned she is going to switch a collection of paperwork and letters from related U.S. authorities businesses outlining the operation and enforcement of the framework to her EU counterpart, Commissioner Didier Reynders.

The EU will then conduct an “adequacy determination” of the measures, the White House mentioned. It will assess the sufficiency of the data safety measures in order to restore the data switch mechanism.

— CNBC’s Chelsey Cox contributed to this report.

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