2016-03-17

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Privacy Shield is a transatlantic framework agreement that will “limit” and “regulate” how US firms handle European citizens’ data.

The agreement was concluded by the European Commission on February 2nd. But, the European Parliament feels the agreement is neither limiting nor regulating enough. And in any case, it is unlikely to survive legal scrutiny.

The digital transatlantic partnership

On Thursday, March 17, Members of the European Parliament were holding a hearing trying to scrutinize a transatlantic partnership worth billions of Euros and Dollars, but one that has received much less media attention. That is the so-called “Privacy Shield.”

Privacy Shield was the fruit of a negotiation that started in November 2015 to be concluded within three months, that is, a record by any measure. The Members of the “Citizens’ Rights, Justice and Home Affairs Committee” are scrutinizing an agreement that technology firms are quite eager to see ratified as soon as possible.

4,000 US-based tech-corporations operating in Europe, from Facebook and Google to Twitter and LinkedIn do not have a legal framework that regulates how the data they mine from individual citizens can be stored, used, and shared.

For an industry whose bread and butter is data that is quite consequential.

An industry on thin air

On October 6 2015, the European Court of Justice (ECJ) ruled that permitting US public authorities “access on a generalized basis” to the content of electronic communications “must be regarded as compromising the essence of the fundamental right to respect for private life,” that is, article seven of the Charter of Fundamental Rights. In effect, the ECJ obliterated the Safe Harbour agreement concluded by the Prodi Commission in 2000.

This was of course the result of a battle initiated by the Austrian litigation-activist, Max Shrems. Since Edward Snowden revealed the US intelligence operation “PRISM,” through which US authorities drew personal data from Facebook, Twitter, and Google, Schrems sought to find out whether his own data were protected. The Austrian law graduate began his litigation battle in Ireland – Facebook’s tax heaven of operations – and moved on to the ECJ.

Following the ECJ ruling in October 2015, the whole tech-sector in Europe was standing on regulatory thin air. A working group of 28 data protection regulators in the EU gave the European Commission a January deadline to come up with an agreement. Meanwhile, US-based technology firms were asked to limit Europeans’ personal data transfer to the United States.

For the industry, the clock was clearly ticking.

But, politics requires time

Today, the European Commission contends that Privacy Shield improves data protection standards. New standards include a US-based dedicated ombudsman to allow Europeans to raise concerns or complaints.

European Commission Vice-President Andrus Ansip, says that “personal data is fully protected.” Vĕra Jourová added that “the United States has given the EU binding assurances that public authority access for national security purposes will be subject to clear limitations, safeguards and oversight mechanisms.”

The EPP spokesperson, Axel Voss, moved to support the European Commission suggesting that the agreement is “of paramount importance to our digital economy” calling the new framework “clear” and “reasonable.”

Others are less convinced.

The Socialists and Democrats spokesperson, Birgit Sippel, said that the agreement does nopt seem “to rectify the problems with the previous system,” which means “it is unlikely to stand up in court.” ALDE group First Vice-President Sophie in ‘t Veld  also doubted “an ombudsman will have sufficient powers to oversee US intelligence services.” GUE/NGL accused the Commission of “merrily letting data transfers to the US continue” despite the ECJ ruling. The Greens/EFA group MEP Jan Albrecht called the “Privacy Shield” a reheating of the “Safe Harbour.”

The post Privacy Shield: a transatlantic partnership with many opponents appeared first on New Europe.

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