CCIA Applauds Senate Commerce Attention To Data Transfer Solutions

BY Heather Greenfield
December 8, 2020

Washington — The Senate Commerce Committee holds its hearing “The Invalidation of the EU-US Privacy Shield and the Future of Transatlantic Data Flows,” Wednesday to examine the economic impact of the suspension of the popular data transfer framework and the U.S. government’s ongoing engagement to negotiate a new transfer system.

Thousands of large and small businesses are facing legal uncertainty for their routine transfers of commercial data between the EU and U.S. after a European court invalidated the widely used Privacy Shield data transfer mechanism. The Court’s concerns stem from discrete U.S. surveillance authorities, but stand to impact a wide range of businesses as data transfers support many important business practices including customer service, payment processing, research and development, and human resources.

The Computer & Communications Industry Association has long supported accountable frameworks to enable data transfers freely and securely. The following can be attributed to CCIA President Matt Schruers:

“Unencumbered data flows are crucial to sustaining the multi-trillion dollar transatlantic economic partnership. We appreciate the Senate Commerce Committee’s attention to ensuring that practical, sustainable mechanisms are available to transfer data between the U.S. and Europe. Data transfers upon first glance sound like an obscure technical issue – until people realize how necessary they are to a wide range of digital and data-enable products, services, and routine business operations. Data transfers affect our ability to safely and routinely use  banking, tele-health, and e-commerce which have become so integral to our daily lives.

“A lack of legal clarity over internet data transfers could disrupt a significant segment of the economy, especially to small and medium-sized enterprises. As companies move more operations online to responsibly operate amid the pandemic, a data lockdown would pose heightened risks to the economic recovery.”

Related Articles

CCIA Offers European Commission Comments On Data Transfer Method

Dec 11, 2020

CCIA submitted comments to the European Commission on the draft new Standard Contractual Clauses (‘SCC’) to transfer data outside of the EU. CCIA believes this transfer tool will pave the way towards greater legal certainty for most data transfers outside the European Union. However, the tool could still be made more practical for companies to…

EU Top Court Strikes Down Privacy Shield, CCIA Calls for Urgent Legal Certainty and Solutions

Jul 16, 2020

Brussels, BELGIUM — The European Court of Justice (CJEU) issued a landmark ruling today that invalidates Privacy Shield, a key legal mechanism which thousands of companies use to transfer commercial data from the EU to the United States. The CJEU ruled that the Privacy Shield decision does not comply with EU law. Among other things,…

CCIA Welcomes Advocate General Opinion on Validity of EU Data Flow Instrument

Dec 19, 2019

Brussels, BELGIUM — Advocate General Saugmandsgaard Øe has issued a non-binding opinion in response to a case involving data transfers that are used to process information like credit card transactions or insurance claims. The case examined whether so-called Standard Contractual Clauses provide sufficient protection to EU citizens’ data when transferred outside the European Union. Standard…