European Union (“EU”) Commissioner Věra Jourová will meet with U.S. President Donald Trump this month to discuss the future of the EU-U.S. Privacy Shield (“Privacy Shield”) accord which imposes obligations on U.S. companies on the protection of personal data of EU citizens. It also requires the U.S. to monitor and enforce EU data protection rules robustly, and cooperate more with European Data Protection Authorities.
The Privacy Shield was enacted to replace the EU Safe Harbor Agreement, which was established in 2000. The European Court of Justice annulled the EU Safe Harbor Agreement in October 2015, holding that the previous data transfer framework failed to adequately offer sufficient safeguards to protect the privacy rights of EU citizens. Unlike the prior safe harbor accord, amongst other enhanced protections, the Privacy Shield requires written commitments and assurances regarding access to data by public authorities.
On January 25th, 2017, President Trump issued an Executive Order, entitled Enhancing Public Safety in the Interior of the United States, directing U.S. agencies to “ensure that their privacy policies exclude persons who are not United States citizens.” The European Commission (“EU Commission”) requested clarification from the United States on February 7, 2017, that EU citizens would not be affected under the executive order. Following the request, the Federal Trade Commission and U.S. Department of Justice assured Commissioner Jourová and the EU Commission that the United States is committed to the Privacy Shield. In a letter to Commissioner Jourová, the American Civil Liberties Union and Human Rights Watch urged the EU Commission to re-examine whether the Privacy Shield sufficiently protects the fundamental rights of people in the EU following the January 25, 2017 Executive Order.
Commissioner Jourová has pledged to engage in a dialogue with President Trump at the Privacy Shield meeting this month and will seek “reconfirmation and reassurances” from the United States, because the EU “expects continuity.” Commissioner Jourová has warned that “unpredictability is a problem,” and the EU will consider withdrawal from the Privacy Shield if “there is a significant change” under the Trump Administration.