The EU announces a new data transfer agreement with the United States, but faces new challenges

On Monday, the European Commission unveiled a new data transfer agreement with the United States, aiming to address the legal ambiguity that plagues thousands of enterprises that send personal data over the Atlantic.

However, the action was quickly condemned by the non-profit organisation noyb, which is run by privacy campaigner Max Schrems and has stated that it will dispute the arrangement.

The Commission and the US had been unable to establish a new deal after Europe's highest court invalidated two earlier agreements that backed the movement of personal data across the Atlantic for services ranging from cloud infrastructure to payroll and banking.

According to the EU executive, the US procedures guaranteed a sufficient degree of security for Europeans' personal data moved across the Atlantic for commercial purposes.

It stated that additional binding measures, including as restricting US intelligence agencies' access to EU data to what is "necessary and proportionate," as well as the establishment of a Data Protection Review Court for Europeans, answer the concerns voiced by Europe's highest court.

Didier Reynders, the EU's justice chief, stated that he is sure of surviving any legal challenge.

"The principles of the data privacy framework are solid, and I am confident that we have made significant progress that satisfies the requirements of European Court of Justice case law," he said at a news conference.

"I am confident in fighting for and defending the new data agreement." 

According to Schrems, the most recent adjustment was insufficient.

"Announcing something is 'new,' 'robust,' or 'effective' is insufficient before the Court of Justice." To make this work, we would require modifications to US surveillance legislation," he stated in a statement.

"We already have several challenges in the works, but we're sick and tired of this legal ping-pong." We anticipate that this will be heard by the Court of Justice at the beginning of next year," Schrems continued.

The transaction was praised by the lobbying organisation DigitalEurope, whose members include Airbus, Amazon, Apple, Ericsson, Nokia, Philips, and Samsung. 

"Data flows underpin the EU's annual EUR 1 trillion (nearly Rs. 90,75,250 crore) of service exports to the United States, and this decision will give companies more confidence to conduct business and help our economies grow," said the EU's Director-General Cecilia Bonefeld-Dahl. 

Earlier this year, the European Data Protection Board, the EU's privacy watchdog, said the newest data deal still fell short and asked the Commission to do more to protect Europeans' privacy rights.

The last two transactions were scuttled by Europe's top court after Schrems filed objections over worries about US espionage agencies obtaining European people' private data.