The Article 29 Working Group opinion on the Privacy Shield, which called into question the effectiveness of the agreement’s data protection and enforcement regulations, as well as chided its unclear language, has left many questioning how the Privacy Shield will fair in its ongoing approval process.

While there is some disagreement over the effects and significance of the Working Party’s rebuke, there is consensus that the opinion will delay any agreement over transatlantic data transfers for the time being. And such a delay, Daniel Castro, vice president of the Information Technology and Innovation Foundation (ITIF) and director of the Center for Data Innovation told Legaltech News in a statement, does not portend well for U.S. businesses.

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