The new US-EU Data Privacy Pact is a step towards a system that lets personal data move more easily and freely between the European Union and the United States while keeping individuals’ data protection a top priority. It replaces the old EU-U.S. Privacy Shield, which got scrapped in 2020 because of U.S. surveillance concerns.
What Does the New Agreement Mean for Your Data?
1. Stronger data security measures
Businesses are now required to implement strong measures, such as encryption, firewalls, and other safeguards, to protect your information from unauthorised access, breaches, and cyberattacks when transferred from one place to another.
2. Enhanced control over your data
Under the new privacy agreement, individuals will get the right to be informed about the data that companies collect about them. Companies must be more upfront and transparent about their practices in their privacy policies and consent notices. You’ll have the authority to determine how your data is utilised with the ability to exercise the right to refuse certain data practices that don’t align with your preferences.
3. Improved redress mechanisms
Under the pact, if any concerns arise regarding your data, you’ll find improved ways of seeking remedies. Independent bodies have been set up to handle disputes and complaints related to data breaches or privacy violations. This provides you with more accessible avenues to voice your concerns and get the necessary solutions if you find your data has been compromised.
For instance, US citizens are protected against US agencies that may monitor their online activity, but foreign users are not shielded from this. As such, a Data Protection Review Court has been created to deal with claims of this nature.
4. Better access to global services
The privacy pact aims to make the legal transfer of data much more streamlined. This means that you can explore global services and products without data privacy barriers.
5. Business impact and global data economy
We have already seen Facebook owner Meta being fined 1.2 billion Euros by the Irish data protection watchdog for mishandling user data when it was transferred from Europe to the United States.
Compliance with the privacy requirements outlined in the agreement will be crucial for companies looking to operate within the EU market and engage in cross-border data transfers. Adapting to the new privacy framework will be essential for organisations to maintain their competitiveness and create a strong foundation for global data cooperation.