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EU-US Data Privacy Framework: A Short-Term Solution to Data Flows

The European Union (EU) has recently approved a data-sharing agreement with the United States (U.S.). This pact, known as the E.U.-U.S. Data Privacy Framework, is designed to ensure that data continues to flow between the two areas without disruption. It follows a 2020 ruling from the European Court of Justice which declared a previous data-transfer agreement illegal, as it did not provide effective ways for EU residents to challenge surveillance of their data by the U.S. government. Under the new agreement, companies must adhere to a set of privacy obligations such as deleting personal data when it is no longer necessary, and ensuring continuity of protection when sharing data with third parties. EU citizens will also have the right to object if they believe their data has been collected improperly by American intelligence agencies, and the objections will be heard by an independent body of American judges called the Data Protection Review Court. The new agreement is a compromise between the two sides, as the U.S. has a laissez-faire approach to data privacy, while the EU has developed laws based on individuals' rights to control their data. This clash has seen U.S. corporations penalised, such as Meta being fined $1.3 billion for storing information about Europeans on U.S. servers. The new agreement provides a short-term solution to the issue, but as the two systems continue to diverge, data privacy and marketing processes will become increasingly complex and costly. Businesses should therefore remain aware of the changing regulations in both the U.S. and the EU, and ensure they are compliant with all applicable laws to avoid potential fines.

Originally reported by Martech:
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