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End of legal limbo for US big tech in Europe with new data framework

On Friday, US President Joe Biden signed an executive order intended to allay European fears about US surveillance and guarantee the privacy of personal data flows between the EU and the US.

According to the White House, the executive order establishes a new legal framework for transatlantic data transfers, which are vital to the digital economy.

The action taken by Biden is the most recent attempt to put an end to years’ worth of court fights in which European campaigners had questioned the validity of the data transfers and threatened to shut down US Big Tech’s activities in the EU.

“This is a culmination of our joint efforts to restore trust and stability to transatlantic data flows,” Commerce Secretary Gina Raimondo told reporters.

“It will enable a continued flow of data that underpins more than a trillion dollars in cross-border trade and investment every year.”

Although authorities in Brussels cautioned that the presidential order was simply the beginning of a process that may take months to negotiate a new data pact, EU Justice Commissioner Didier Reynders praised the executive order as a “significant step.”

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EU privacy campaigners have filed many cases against US tech firms because they are concerned about US intelligence services’ access to the personal information of Europeans who use Facebook or Google for their online requirements.

After hearing accusations that US regulations infringe the basic rights of EU people, Europe’s top court nullified earlier agreements, often known as equivalence deals.

The executive order, according to the White House, resolves issues that the Court of Justice of the European Union identified when it determined that the earlier Privacy Shield structure did not offer sufficient security.

(with inputs from agencies)

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