However, the two sides have agreed to a “safe harbour principle”
under which US firms which opted to comply with the EU data
protection rules would not be affected by any embargo.
The proposal should create a more predictable and less
complicated framework for EU data controllers needing to transfer
data to the US.
It should also result in improved protection for data flowing to
the US. In addition, guidance will be provided to companies and
other organisations in the US wanting to meet the “adequate
protection” standard.
The agreement has yet to go through all the stages of approval
which are necessary for it to take effect. A spokesman for the
European Commission said that the process is likely to be completed
in July.
The Commission spokesman added, “We hope the Commission will be
able to adopt a formal decision recognising that the safe harbour
offers adequate protection to data being transferred to
participating companies in the United States normally at the
beginning of July.”
The member states “overwhelmingly” approved the terms of the
safe harbour arrangement in Wednesday’s vote. There had been
expectations that Italy, Spain and Austria would vote against it
because of continuing doubts about whether US firms would actually
comply with the EU law.
