US, EU approve new Privacy Shield data-sharing rules

BRUSSELS — New rules governing trans-Atlantic data transfers were formally approved Tuesday, months after Europe’s top court ruled against the previous arrangements amid concerns over the surveillance activities of U.S. intelligence agencies. The European Union and the U.S. say the new Privacy Shield imposes stricter obligations on American companies, including the likes of Facebook and Apple, to safeguard the personal data of individuals, from health matters to social media activities. Critics argue the new framework, which takes effect Aug. 1, doesn’t go far enough, that consumer protections are not strong enough and that the possibility of blanket surveillance from U.S. agencies remains. “The approval of the Privacy Shield is a milestone for privacy at a time when the sharing of data is driving growth in every sector, from advanced manufacturing to advertising,” U.S. Commerce Secretary Penny Pritzker said. “For businesses, the free flow of data makes it possible for a startup in Silicon Valley to hire programmers in the Czech Republic, or a manufacturer in Germany to collaborate with a research lab in Tennessee,” she added. The deal potentially brings an end to a period of uncertainty for businesses following October’s decision by the European Court of Justice that the previous Safe Harbor pact was invalid because it did not adequately protect consumers when their data was stored in the U.S. “The adoption of Privacy Shield will enhance legal certainty for thousands of businesses on both sides of the Atlantic while providing an adequate level of protection for citizens’ data,” said Markus Beyrer, the director general of lobby group BusinessEurope. Schrems’ view was echoed by Jan Philipp Albrecht, a European Parliament lawmaker for the Greens, who said the European Commission “signed a blank check for the transfer of personal data of EU citizens to the U.S., without delivering equivalent data protection rights.”