Privacy Shield (EU-U.S. Privacy Shield)

The EU-U.S. Privacy Shield was a framework allowing companies to transfer personal data from the European Union to the United States while ensuring privacy protections aligned with EU standards. It established rules for data handling, security, and accountability, requiring U.S. companies to follow strict privacy practices when processing EU residents’ information. However, in 2020, the Court of Justice invalidated the Privacy Shield, citing concerns over U.S. government access to data and insufficient protections. As a result, organizations now need alternative legal mechanisms to transfer data across these regions, such as Standard Contractual Clauses.