Tuesday

22nd Jan 2019

EU to adopt new US data rules in July

  • EU commission is set to roll out its updated draft version of Privacy Shield (Photo: Matthew Klein)

The European Commission is set to present a new draft of its data-exchange pact with the US, the Privacy Shield, in early July.

EU justice commissioner Vera Jourova told EUobserver in a recent interview that the most contentious issues had been agreed by Washington and Brussels.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

These concerned access to data by US security services, bulk collection of people’s personal information and independent oversight.

“We reached an accord on more precise listing of cases when bulk collection can occur and a better definition of how our American partners understand the difference between bulk collection which may be justified and mass surveillance without any purpose, which is not tolerable”, she said.

“These specific points have already been finished and put down in written form”.

The shield is to replace the 15 year-old Safe Harbour pact that failed to protect the privacy of EU nationals whose data was transferred to firms, such as Facebook, based in the US.

The EU Court of Justice (ECJ) invalidated the harbour treaty last year, due in part, to revelations by Edward Snowden, a former US intelligence contractor, of mass-scale US snooping on Europeans.

The EU commission and the US, after two years of talks, proposed the shield treaty as a replacement earlier this year.

But the EU's main regulatory body on privacy, the Article 29 Data Protection Working Party, criticised the initial draft in the strongest possible terms.

The body is composed of EU states’ national data supervisors and EU officials.

Isabelle Falque-Pierrotin, its chair, said in April that the shield would fail to protect people's data.

“The possibility that is left in the shield and its annexes for bulk collection … is not acceptable," she said.

She sent the draft back to the EU commission, which is now set to present its updated version.

Big money

The issue is important because big and small companies that use data on both sides of the Atlantic have had to use more costly and more complicated data exchange frameworks ever since Safe Harbour’s demise.

A lot of money is involved. The data flows are worth an estimated €230 billion a year.

Broader concerns on how well the new “shield” would stand up to ECJ scrutiny have also put companies on edge.

Giovanni Buttarelli, the European data protection supervisor (EDPS), told reporters in May he too had "serious concerns" with Privacy Shield.

But Jourova remained confident.

Aside from having narrowed down on US bulk collection, she said she had also tackled the problem of oversight.

The US has promised to set up a special ombudsman, embedded in the state department, to help deal with complaints from EU nationals.

But doubts emerged over the independence of the new office.

Jourova told this website that "a more precise definition of competencies, status, and functioning" of the ombudsman have since been agreed.

Not everything is ready, however.

Jourova said the EU and US still need to agree on how long firms can retain the data and for what purpose.

"We want to make sure that personal data will only be kept for that period which is necessary and to agree on exceptions which enable them to keep data for a longer time," she said.

Exceptions in the EU include retaining data for scientific research purposes or for healthcare needs.

“In the US they have a broader, a more benevolent system [on retention], and everything that we do on Privacy Shield is to make sure that there’ll be equivalent, not the same, but equivalent, protection [for EU and US nationals]”, she said.

EU data regulation

The EU commission said the Privacy Shield would become operational almost immediately after it is adopted by the college of EU commissioners in July, with no further input from the EU Council or MEPs.

Around a year later, the EU's reformed data protection regulation should also be implemented.

The regulation is much tougher when it comes to privacy controls and companies will have to comply with it or face big fines.

The difference between the two hinges on how a company uses data.

Data sent to a company in the US would fall under the Privacy Shield. But if the same company also offers goods and services in the EU and collects EU nationals’ data remotely, then it will have to comply with the EU regulation as well.

Germany led way on EU rights protection

Germany led the way on protection of human rights this year, but Hungary, Italy, and Poland "undermined the EU's moral standing" on the world stage, a leading NGO said.

News in Brief

  1. May U-turn on fee for EU nationals in UK
  2. French data watchdog gives Google €50m fine
  3. EU hits Russians with sanctions over Salisbury attack
  4. 'Don't look for answers to Brussels', EU tells UK
  5. Germany warns UK not to 'misuse' EU patience on Brexit
  6. Germany sent 8,658 asylum-seekers to other EU states
  7. Poll: Macron popularity up four percent
  8. 'Economy is broken' says Oxfam in global inequality report

Stakeholders' Highlights

  1. International Partnership For Human RightsKyrgyz authorities have to immediately release human rights defender Azimjon Askarov
  2. Nordic Council of MinistersSeminar on disability and user involvement
  3. Nordic Council of MinistersInternational appetite for Nordic food policies
  4. Nordic Council of MinistersNew Nordic Innovation House in Hong Kong
  5. Nordic Council of MinistersNordic Region has chance to become world leader when it comes to start-ups
  6. Nordic Council of MinistersTheresa May: “We will not be turning our backs on the Nordic region”
  7. International Partnership for Human RightsOpen letter to Emmanuel Macron ahead of Uzbek president's visit
  8. International Partnership for Human RightsRaising key human rights concerns during visit of Turkmenistan's foreign minister
  9. Nordic Council of MinistersState of the Nordic Region presented in Brussels
  10. Nordic Council of MinistersThe vital bioeconomy. New issue of “Sustainable Growth the Nordic Way” out now
  11. Nordic Council of MinistersThe Nordic gender effect goes international
  12. Nordic Council of MinistersPaula Lehtomaki from Finland elected as the Council's first female Secretary General

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic design sets the stage at COP24, running a competition for sustainable chairs
  2. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  3. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  4. International Partnership for Human RightsCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  5. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  6. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  7. International Partnership for Human RightsCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  8. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  9. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  10. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want
  11. Nordic Council of MinistersNordic Countries Take a Stand for Climate-Smart Energy Solutions
  12. Mission of China to the EUChina: Work Together for a Better Globalisation

Join EUobserver

Support quality EU news

Join us