European Court declares Privacy Shield treaty with US invalid

The European Court of Justice has declared the Privacy Shield Treaty between the EU and the United States invalid. Privacy Shield regulates the exchange of personal data between companies in the European Union and the US. According to the Court, personal data of EU citizens stored in the United States is not sufficiently protected.

The Court finds that “the requirements of national security, the public interest, and compliance with US law take precedence, allowing for interference with the fundamental rights of individuals whose personal data are transferred to the United States.” However, according to the Court of Justice, contractual clauses for the transfer of personal data to processors established in third countries are valid.

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