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Data protection in change: What does the EU's new adequacy decision mean?

On 10 July 2023, the European Commission introduced a new adequacy decision under the EU-US Data Privacy Framework. This decision is a response to the challenges posed by the so-called Schrems II ruling from 2020, which invalidated the Privacy Shield framework. The ruling made it difficult to transfer data from the EU to the USA under GDPR.

US measures

In response to this challenge, the USA adopted an executive order in October 2022, which introduced stronger protections for European citizens' data. However, it is important to note that an executive order is not a permanent solution and can be changed by future administrations.

After a review period, the European Commission considered these changes in US legislation sufficient, leading to the new adequacy decision.

New decision by the European Commission

Despite the European Commission's new adequacy decision, uncertainty remains, especially considering that US authorities still have the right to request personal data from US cloud services within the EU. Experts and critics, such as Max Schrems from the organisation NOYB, point out that the fundamental problems with US surveillance legislation remain.

“We have now had ‘Harbors’, ‘Umbrellas’, ‘Shields’ and ‘Frameworks’ – but no substantial change in US surveillance law.” - Max Schrems

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Three important points regarding the adequacy decision

Restrictions on data transfers to the USA

Recipients of data transfers in the USA are required to certify under the adequacy decision. The decision therefore does not allow transfers to the USA in general.

The ongoing conflict with the GDPR

American law gives their authorities the right to request personal data from American cloud services in the EU, which according to NOYB represents a continuation of the conflict with the GDPR.

Protection level within the EU

Organisations within the EU must ensure the level of protection required under the GDPR. The decision was met with criticism that effective protection cannot be guaranteed when third country legislation may allow restrictions on the rights of European individuals.

Would you like to deepen your knowledge of how the adequacy decision affects your company? Download our guide to cloud compliance for more information.

Compliance Guide Download

Download our guide to cloud compliance. In the guide, you can read about the EU's latest adequacy decisions and how they affect your choice of cloud service.

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