Biden Signs Executive Order to Preserve US-EU Data Transfers

American tech businesses and manufacturing sectors applauded the amendment.

U.S. President Joe Biden signed an executive order Friday, Oct. 7, to establish a new framework that protects the privacy of personal data transferred between the U.S. and Europe.

Since a European court overturned a prior version of data safeguards in 2020, the new framework significantly improves the state of data security across the Atlantic.

Schrems II Decision

Deputy Assistant Secretary for Services James Sullivan released a public letter after the decision.

Known as the Schrems II, the European Court of Justice's (ECJ) July 16 judgment in Data Protection Commission v. Facebook Ireland and Maximillian Schrems, Case C-311/18 has generated considerable doubt over firms' capacity to transmit personal data from the European Union (E.U.) to the U.S. in a way consistent with E.U. law.

In addition, the ECJ's Schrems II ruling requires organizations that use EU-approved data transfer mechanisms to verify whether foreign legal protections comply with E.U. data protection rules.

Therefore, the U.S. Government has created an authoritative report to help organizations examine whether their data transfers give adequate protection in compliance with the ECJ's ruling. It describes the substantial constraints and protections in the U.S. pertaining to government access to data.

The New Framework

People in the E.U. will be able to seek recourse through an independent Data Protection Review Court (DPRC) made up of members from outside the U.S. government, thanks to the new framework. According to the CNBC report, the fact sheet released in March said that the committee would have complete authority to adjudicate claims and direct remedial steps as necessary.

An initial inquiry of complaints will also be carried out by the civil liberties protection officer in the Office of the Director of National Intelligence before an issue is referred to the DPRC for further consideration. Additionally, its decisions are legally binding but subject to the independent body's assessment.

The executive order directs the U.S. intelligence community to change policies and procedures to reflect new privacy protections. It requires the Privacy and Civil Liberties Oversight Board, an independent organization, to analyze these updates and determine if the intelligence community has followed binding redress judgments.

The E.U. will then determine the measures' "adequacy," said the White House. It will examine the data protection measures to restore data transport.

Reactions from Industry Companies

Tech companies and industry groups hailed the decision. Meta President of Global Affairs Nick Clegg said that the firm appreciates this amendment to U.S. law as it will serve to protect the global accessibility of the internet and its ability to keep families, businesses, and communities in constant contact.

TechNet President and CEO Linda Moore are thanking Biden Administration for ensuring efficient and successful cross-border data transfers. She added that the company "will continue to work with the Administration and members of Congress from both parties to pass a federal privacy bill."

This article is owned by Tech Times

Written by Trisha Kae Andrada

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