US Supreme Court Just Blew Up EU-US Data Transfers

Wed, 01 Jul 2026 21:25:41 GMT

Why it matters: The US Supreme Court's decision undermines the legal basis for EU-US data transfer agreements, potentially disrupting transatlantic digital commerce and privacy practices.

Notes

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
'Data Protection Review Court' is an executive body within US Justice Ministry and not truly independent
GDPR allows necessary data transfers to any third country but restricts structural offshoring of EU data

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.

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US Supreme Court Just Blew Up EU-US Data Transfers