Schrems II : a heavy legal burden on US and European companies alike

Posté par Isabelle Szczepanski le 24 septembre 2020

The Schrems II judgment makes each corporation liable for the assessment, on a case-by-case basis, of the risk of its data being captured by the US intelligence services. This nigh unbearable pressure on the private sector could justify the passing of Federal data protection rules by the US Congress sooner rather than later. California is getting the ball rolling, with a vote slated for Nov. 3. The effects of the Schrems II judgment will also be deleterious for European SMEs, depending on services such as Google Analytics.

The Schrems II judgment cancelled the « Privacy Shield » agreement on the transfer of data between the EU and the United States, while continuing to authorize transfers made on the basis of standard contractual clauses. But the devil is in the details : in order to continue using these contractual clauses as the legal basis of their data transfers, companies must provide a considerable amount of work, data protection specialists at Clifford Chance warned today. Each entity transferring data across the Atlantic must now ask the question : « what is the risk that my data will be seized by the US intelligence…

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