US Supreme Court Just Blew Up EU-US Data Transfers
The US Supreme Court's decision undermines the legal basis for EU-US data transfer agreements, potentially disrupting transatlantic digital commerce and privacy practices.
- US Supreme Court's Trump v. Slaughter decision declares FTC independence unconstitutional
- EU-US Data Privacy Framework relies on FTC 'independence' 259 times in EU-US data flow decision
- European Commission issued the EU-US Data Privacy Framework in 2023, largely a copy of previously annulled deals
Full summary
The US Supreme Court's decision in Trump v. Slaughter has declared the Federal Trade Commission (FTC) unconstitutional as an independent body, undermining the legal basis for the EU-US Data Privacy Framework. This framework relied on the FTC’s independence to facilitate personal data transfers between the two regions. The European Commission issued this framework in 2023, but it is now under threat due to the lack of true independence in US oversight bodies like the 'Data Protection Review Court.' While GDPR allows for necessary data transfers, structural offshoring remains restricted. Max Schrems and noyb have called on the European Commission to orderly withdraw this decision, potentially leading to a significant shift in EU-US digital commerce.