Privacy Shield (invalidated)

The Privacy Shield was an agreement that allowed companies to transfer personal data between the European Union and the United States while ensuring data protection standards. It enabled organizations on both sides to share information securely for business purposes. However, in 2020, the European Court of Justice invalidated the Privacy Shield, citing concerns that U.S. laws did not provide adequate privacy protections for Europeans. As a result, companies now need alternative methods to transfer data legally and securely across borders, such as Standard Contractual Clauses, to ensure compliance with EU privacy laws.