Microsoft became the first US tech company to say it would transfer users’ information to the US using a new transatlantic commercial data pact and would resolve any disputes with European privacy watchdogs.
The company delivered its verdict on the transatlantic data transfer deal just two days before European Union data protection authorities are due to deliver their own.
Privacy Shield was negotiated to replace the July 2000 Safe Harbor agreement, which the Court of Justice of the EU overturned last October, declaring it incompatible under EU privacy laws. Those laws require that the personal information of EU citizens only be processed in countries where it can be accorded the same level of privacy protection as under EU law.
The European Commission, which negotiated the framework on behalf of the EU, has urged companies to comply with decisions from the 28-member bloc’s data protection authorities in disputes to help the Privacy Shield survive an expected future court challenge.
Companies transferring human resources data will have to submit to the jurisdiction of European regulators, but for other companies it will merely be voluntary. The main enforcers of the framework will be the U.S. Department of Commerce and the U.S. Federal Trade Commission.
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