EC: Privacy Shield Has Made 'Good Progress,' Needs a Few Tweaks

The European Commission sees "good progress" with Privacy Shield after three years, said European Justice, Consumers and Gender Equality Commissioner Vera Jourova Wednesday. The EC's third review of the trans-Atlantic personal data transfer system found the U.S. followed last year's recommendations, and that about 5,000 companies participate, she said. After EC urging, the U.S. appointed a permanent ombudsman to ensure Europeans' complaints about national security are properly resolved; the Department of Commerce is more attentive to exercising oversight; and the FTC stepped up investigations. PS became a "good tool of digital diplomacy" that spurs dialogue, with several U.S. states and the federal government now talking about data protection legislation, Jourova said. The report noted several issues with practical implementation, and recommended Commerce shorten various periods granted companies to complete recertification, and develop tools for detecting false claims of participation from companies that never applied for certification, and that the FTC prioritize finding ways to share meaningful information about ongoing investigations with the EC and EU data protection authorities. "Privacy Shield remains a successful instrument for the protection of European citizens' data and an essential tool for the safe transfer of commercial data between the two largest trading partners," said Computer & Communications Industry Association European Senior Manager Alexandre Roure. The pact is working but in jeopardy, said Center for Data Innovation Senior Policy Analyst Eline Chivot. The European Court of Justice hasn't ruled whether European citizens' personal data can be transferred to the U.S., a decision expected early next year. This positive review shows the "landmark initiative continues to be a reliable and stable mechanism" for smooth, secure data flows, said Information Technology Industry Council Vice President-Europe Guido Lobrano.