Under the GDPR, transferring the personal data of EU citizens outside the European Economic Area (EEA) is prohibited unless the target country ensures an adequate level of data protection. This rule creates significant operational hurdles for transatlantic business data flows.
The Impact of the Schrems Decisions
[EU Data Exported to US] 
           |
           v
[Schrems I Ruling (2015)] -------> Invalidated Safe Harbor Framework
           |
           v
[Schrems II Ruling (2020)] ------> Invalidated Privacy Shield Framework
           |
           v
[Operational Solution] ----------> Implement Standard Contractual Clauses (SCCs)
                                   Conduct mandatory Transfer Impact Assessments

Following the invalidation of the Privacy Shield framework by the European Court of Justice in the Schrems II decision, organizations must rely on alternative legal mechanisms to move data across borders:
  1. Standard Contractual Clauses (SCCs): Standardized contract templates approved by the European Commission. These clauses commit the data importer to follow EU data protection standards.
  2. Transfer Impact Assessments (TIAs): Mandatory audits where organizations analyze the local laws of the importing country to ensure government surveillance powers do not undermine the protections guaranteed by the SCCs.

 
PreviousNext