A commercial data transfer pact provisionally agreed by the EU executive and the United States in February received the green light from EU governments on Friday, the European Commission said, paving the way for it to come into effect next week.
Its introduction should end months of legal limbo for companies such as Google, Facebook and MasterCard after the EU’s top court struck down the previous data transfer framework, Safe Harbour, on concerns about intrusive U.S. surveillance.
Representatives of European Union member states mostly voted in favor of the EU-U.S. Privacy Shield, but there were abstentions from Austria, Slovenia, Bulgaria and Croatia, sources said. Austria and Slovenia have voiced concerns that the pact does not go far enough to secure their citizens’ privacy.
The new framework will underpin over $250 billion dollars of transatlantic trade in digital services annually by facilitating cross-border data transfers that are crucial to international business.
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Time For Truth: (Reuters) – EU-U.S. commercial data transfer pact clears final hurdle