Privacy pressure mounts on the US as European court scuttles international data-transfer regime

MLex Market Insight

The recent court success of European privacy activist Max Schrems has cast a shadow over the operations of companies needing to move data across the Atlantic. The European Court of Justice’s ruling that the “Privacy Shield” data-transfer arrangement between was invalid because of the surveillance risks in the US. It’s still unclear the extent to which the court’s decision will affect global digital transfers, however lawmakers and regulators will still have to scramble to find new solutions. The judges have also highlighted what is likely to remain a stumbling block for trans-Atlantic data exchanges: the absence of national privacy laws in the US.