International Tax Advisory: The ECJ rules on the data transfer agreement

Tax advisory: The "Privacy Shield" between the United States and the European Union is invalidated by this body

On July 16th, the European Court of Justice (ECJ) issued its ruling on the "Privacy Shield" agreement. In the year 2015, the data transfer agreement between the United States (US) and the European Union (EU) was annulled by the European court because it did not offer adequate protection for information from Europe.

Now, the ECJ is again throwing out the agreement and states that "the limitations of the protection of personal data in the United States are not regulated according to the requirements of the law of the Union".

As for surveillance programs, it argues the following:

  • Surveillance programs, based on the aforementioned regulations, are not limited to what is strictly necessary.
  • There are no guarantees for non-U.S. nationals who are potentially subject to such programs.

With respect to the requirement for judicial protection, the ECJ adds the following criteria:

  • The regulations do not confer on the interested parties rights that are enforceable by the US authorities before the courts.
  • The Ombudsman mechanism does not provide any means of recourse to a body offering the guarantees of Union law.

In conclusion, the EU Court of Justice has decided to declare the Privacy Shield decision, included in the agreement between the United States and the European Union, as "invalid".

B Law & Tax
International Tax & Legal Advisors.

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Etiquetas: tax advisor Madrid, Privacy Shield, United States, international tax consultancy, Data Protection General Regulations