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Statement of the Article 29 Working Party Regarding Schrems EU Court Decision

Privacy/Cyber Risk & Data Security

Privacy, Cyber Risk & Data Security

On October 16, the Article 29 Working Party (Working Party) released a statement regarding the October 6 Court of Justice of the European Union’s decision to invalidate the adequacy of the U.S.-EU data protection Safe Harbor framework. The EU Court recently declared that the Safe Harbor Framework fails to “ensure an adequate level of protection of the personal data which is transferred to the United States from the European Union.” In response to the EU Court’s decision, the Working Party provided the following guidance on the implementation of the judgment: (i) a broad analysis of third country domestic laws and international commitments must be applied when determining if data transfers meet adequacy standards; and (ii) Member States and European institutions should hold open discussions with U.S. authorities to “find political, legal and technical solutions enabling data transfers to the territory of the United States that respect fundamental rights.” The Working Party noted that it will continue to monitor the Irish High Court for developments concerning the Schrems opinion, but that “[i]f by the end of January 2016, no appropriate solution is found with the US authorities and depending on the assessment of the transfer tools by the Working Party, EU data protection authorities are committed to take all necessary and appropriate actions, which may include coordinated enforcement actions.”