Privacy Shield now a thing of the past and while standard contractual clauses remain valid, organisations' ability to rely on them have now been seriously impacted by this latest ruling. Going forwards, if organisations are to rely on standard contractual clauses, they will need to undertake their own due diligence of the recipients' adequacy on a case by case basis which will no doubt be another administrative hurdle for organisations wishing to transfer data outside of the EEA.
This is no doubt a very bold move by the European Courts and will have huge ramifications not just for EU-US transfers but all ex EEA transfers. We now need our regulators to act quickly, effectively and above all practically to help us determine the best way to navigate the new landscape for international data transfers.
Yesterday’s decision could have a seismic impact on international transfers at a time when the world economy needs to get back on track. While Privacy Shield is no more, we can only hope that the EU/US authorities work quickly to find an alternative mechanism.