EU–US Privacy Shield
EU–US Privacy Shield
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EU–US Privacy Shield

The EU–US Privacy Shield was a legal framework for regulating transatlantic exchanges of personal data for commercial purposes between the European Union and the United States. One of its purposes was to enable US companies to more easily receive personal data from EU entities under EU privacy laws meant to protect European Union citizens. The EU–US Privacy Shield went into effect on 12 July 2016 following its approval by the European Commission. It was put in place to replace the International Safe Harbor Privacy Principles, which were declared invalid by the European Court of Justice in October 2015. The ECJ declared the EU–US Privacy Shield invalid on 16 July 2020, in the case known as Schrems II. In 2022, leaders of the US and EU announced that a new data transfer framework called the Trans-Atlantic Data Privacy Framework had been agreed to in principle, replacing Privacy Shield. However, it is uncertain what changes will be necessary or adequate for this to succeed without facing additional legal challenges.

In October 2015 the European Court of Justice declared the previous framework called the International Safe Harbor Privacy Principles invalid in a ruling that later became known as "Schrems I". Soon after this decision, the European Commission and the U.S. Government started talks about a new framework, and on February 2, 2016, they reached a political agreement. The European Commission published the "adequacy decision" draft, declaring principles to be equivalent to the protections offered by EU law.

The Article 29 Data Protection Working Party delivered an opinion on April 13, 2016, stating that the Privacy Shield offers major improvements compared to the Safe Harbor decisions, but that three major points of concern still remain. They relate to deletion of data, collection of massive amounts of data, and clarification of the new Ombudsperson mechanism. The European Data Protection Supervisor issued an opinion on 30 May 2016 in which he stated that "the Privacy Shield, as it stands, is not robust enough to withstand future legal scrutiny before the [European] Court".

On 8 July 2016 EU member states' representatives (article 31 committee) approved the final version of the EU-U.S. Privacy Shield, paving the way for the adoption of the decision by the commission. The European Commission adopted the framework on 12 July 2016 and it went into effect the same day.

On January 25, 2017, U.S. President Donald Trump signed an executive order entitled "Enhancing Public Safety" which states that U.S. privacy protections will not be extended beyond US citizens or residents:

Agencies shall, to the extent consistent with applicable law, ensure that their privacy policies exclude persons who are not United States citizens or lawful permanent residents from the protections of the Privacy Act regarding personally identifiable information.

This executive order was repealed by President Joe Biden on January 20, 2021.

The European Commission has stated that:

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