Privacy Shield Framework

The Privacy Shield Framework was a mechanism that facilitated transatlantic data transfers between the European Union and the United States from 2016 to 2020. It replaced the earlier Safe Harbor framework after that was invalidated by the Court of Justice of the European Union. Privacy Shield established privacy principles that participating US organizations committed to follow, including notice, choice, accountability for onward transfer, security, data integrity, access, and recourse/enforcement. Organizations self-certified compliance with the framework through the US Department of Commerce. However, on July 16, 2020, the EU Court of Justice invalidated Privacy Shield in the Schrems II decision, ruling that US surveillance practices and lack of adequate redress mechanisms for EU citizens violated fundamental rights. Following this invalidation, organizations could no longer rely on Privacy Shield as a legal basis for EU-US data transfers. Companies had to immediately pivot to alternative transfer mechanisms like Standard Contractual Clauses (SCCs), Binding Corporate Rules (BCRs), or other Article 46 mechanisms. The Privacy Shield invalidation had massive implications for international data flows. In response, a new EU-US Data Privacy Framework was negotiated and adopted in 2023 to address the court's concerns, though its long-term viability remains subject to legal challenges.