US President Joe Biden signed an executive order on Friday designed to protect the privacy of personal data transfers between the EU and the United States and address European concerns about US intelligence collection activities.
The order provides a new legal framework for trans-Atlantic data flows that are critical to the digital economy, the White House said.
It will be subject to review and ratification by the European Commission, a process expected to take several months.
"This is a culmination of our joint efforts to restore trust and stability to trans-Atlantic data flows," Commerce Secretary Gina Raimondo told reporters.
My statement regarding the signing today by @POTUS of an Executive Order on “Enhancing Safeguards for United States Signals Intelligence Activities”: https://t.co/VI9MciuMHX
— Secretary Gina Raimondo (@SecRaimondo) October 7, 2022
US tech giants have faced a barrage of lawsuits from EU privacy activists concerned about the ability of US intelligence services to access the personal data of Europeans.
Europe's top court has invalidated previous arrangements after hearing complaints that US laws violate the fundamental rights of EU citizens.
The White House said the executive order addresses concerns raised by the Court of Justice of the European Union when it ruled that the previous framework known as Privacy Shield did not provide adequate protection.
Privacy Shield, struck down in July 2020, was the successor to another EU-US deal, Safe Harbor, which was itself torpedoed by a court ruling in 2015.
Businesses have since resorted to legally uncertain workarounds to keep the data flow moving, with hope that the two sides could come up with something stronger in the long term.
US officials acknowledged that the new pact will almost certainly face intense legal scrutiny that began after revelations by Edward Snowden of mass digital spying by US agencies.
(with wires)
