EU: CJEU throws out Privacy Shield allowing EU-US personal data transfer

The editorial team is offering you free access to this article
Start your free 1-month trial to access all our content

On 16 July the CJEU handed down a ruling throwing out the Privacy Shield, which had succeeded the earlier Safe Harbour data transfer agreement that was also struck down by the same court back in 2015, and also on similar grounds of the risk to data protection posed by US surveillance programmes. The Privacy Shield arrangement can currently derogate from the EU’s main data privacy regime, the General Data Protection Regulation (GDPR), and as result allows companies to legally transfer European citizens’ personal data over to the US. This arrangement results from an EU Commission decision based on observing adequate levels of protection for the personal data that is transferred to the US under the terms agreed between the two parties. It is this assessment of ‘adequate’ protection that the CJEU has been reviewing. Although the case itself directly concerns Facebook, in its judgment the CJEU considers that the ‘Privacy Shield’ ‘enables interference, … with the fundamental rights of the persons whose personal data is or could be transferred from the European Union to the United States’, because the US authorities could access the content beyond that which ensures ‘that the interference is limited to what is strictly necessary,’ this revocation has serious repercussions on companies transferring data to the US, and in particular within the HR domain. The Commissioner for Justice, Didier Reynders, is already said to have solutions at the ready and the EU Commission has already anticipated several ‘scenarios.’ The Court has also validated the legality of ‘contractual clauses’ pertaining to data transfer, which allow companies to comply with the GDPR by way of individual commitments to adhere with certain precautions over the use of their European citizens’ data.

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Spain: introduction of sick leave for menopause-related symptoms
The news. As of 1 December, female employees in Spain suffering from an incapacitating condition associated with menopausal symptoms will be eligible for specific sick leave, paid from the very...
UK: government promises human rights due diligence bill
The news. On 4 November, the government promised, through Business Secretary Jonathan Reynolds before the House of Lords, the statutory introduction of human rights due diligence in the UK. It...
5 November 2026
UK: new protection measures against “fire and rehire” postponed to March 2027 
On 22 October, the UK government announced the postponement of the coming into force of measures aimed at restricting "fire and rehire" and "redundancy and re-employment", provided for under the...
5 November 2026
EU: several social texts promised for 2027
The news. On 4 November, the European Commission presented its work programme for 2027. While the focus is once again on simplification, several social texts have been announced. The European...
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Living wage still struggles to align with social dialogue (study)
As part of its summer school on social dialogue, the ILO commissioned a study on the living wage. This concept, which takes workers' needs into account when determining wage levels and which major...
9 October 2026
2
EU: Commission to launch a business coalition against modern slavery
The news. On 16 October, the European Commission presented a new strategy to combat human trafficking. While labour exploitation reported by the authorities rose by 17% between 2021-2022 and...
19 October 2026
3
UK: government promises human rights due diligence bill
The news. On 4 November, the government promised, through Business Secretary Jonathan Reynolds before the House of Lords, the statutory introduction of human rights due diligence in the UK. It...
5 November 2026