This summer, the U.S. Department of Commerce is updating its Safe Harbor certification. Following revelations of pervasive National Security Agency spying, European Union authorities are worried that EU citizens’ privacy may not be secure in the U.S. The European Parliament has threatened to veto any future EU/U.S. trade agreement unless the United States improves privacy rights in the U.S. for EU citizens. This dispute has set the stage for the biggest transatlantic showdown since Gwyneth Paltrow and Chris Martin announced their “conscious uncoupling.“
The Department of Commerce negotiated a Safe Harbor Agreement with EU authorities following the 1995 EU Data Protection Directive. The Safe Harbor provides a mechanism for companies to show that “adequate protections” are in place to protect the privacy rights of EU citizens when their data is transferred to the U.S. More than 3,500 companies have signed up. But unless the privacy framework is improved, EU authorities have threatened to suspend the Safe Harbor Agreement.
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