PRIVACY + SECURITY BLOG

News, Developments, and Insights

Privacy Shield

The European Court of Justice has finally issued its decision in Facebook Ireland Ltd. v. Maximillian Schrems — otherwise known as Schrems II.

The full text of the Schrems II opinion is here.

The result: The US-EU Privacy Shield Framework is invalid.  The Standard Contractual Clauses are valid.  Ultimately, this means that it is still possible to transfer personal data from the EU to the US, but the US no longer enjoys the special arrangement it had with Privacy Shield. The US is now just like any other country.

Before folks cheer about the survival of the Standard Contractual Clauses (SCC), it should be noted that the ECJ didn’t say that data transfers pursuant to the SCC are automatically valid. Instead, the data controller or processor must “verify, on a case-by-case basis . . . whether the law of the third country of destination ensures adequate protection, under EU law, of personal data transferred pursuant to standard data protection clauses, by providing, where necessary, additional safeguards to those offered by those clauses.” The problem is that it is difficult to imagine how one can verify that the United States (or many other countries with extensive government surveillance) are ensuring adequate protection.  According to the U.S. Supreme Court, contracts can’t give rise to a reasonable expectation of privacy to override the Third Party doctrine.  Controllers or processors can’t fix the lack of standing in Clapper v. Amnesty International. 

Some key quotes from the opinion:

1. Standard Contractual Clauses

¶ 132: “Since by their inherently contractual nature standard data protection clauses cannot bind the public authorities of third countries, as is clear from paragraph 125 above, but that Article 44, Article 46(1) and Article 46(2)(c) of the GDPR, interpreted in the light of Articles 7, 8 and 47 of the Charter, require that the level of protection of natural persons guaranteed by that regulation is not undermined, it may prove necessary to supplement the guarantees contained in those standard data protection clauses. In that regard, recital 109 of the regulation states that ‘the possibility for the controller … to use standard data-protection clauses adopted by the Commission … should [not] prevent [it] … from adding other clauses or additional safeguards’ and states, in particular, that the controller ‘should be encouraged to provide additional safeguards … that supplement standard [data] protection clauses’.”

¶ 133: “It follows that the standard data protection clauses adopted by the Commission on the basis of Article 46(2)(c) of the GDPR are solely intended to provide contractual guarantees that apply uniformly in all third countries to controllers and processors established in the European Union and, consequently, independently of the level of protection guaranteed in each third country. In so far as those standard data protection clauses cannot, having regard to their very nature, provide guarantees beyond a contractual obligation to ensure compliance with the level of protection required under EU law, they may require, depending on the prevailing position in a particular third country, the adoption of supplementary measures by the controller in order to ensure compliance with that level of protection.”

¶ 134: “It is therefore, above all, for that controller or processor to verify, on a case-by-case basis and, where appropriate, in collaboration with the recipient of the data, whether the law of the third country of destination ensures adequate protection, under EU law, of personal data transferred pursuant to standard data protection clauses, by providing, where necessary, additional safeguards to those offered by those clauses.”

¶ 135: “Where the controller or a processor established in the European Union is not able to take adequate additional measures to guarantee such protection, the controller or processor or, failing that, the competent supervisory authority, are required to suspend or end the transfer of personal data to the third country concerned.”

 

2. Privacy Shield

¶ 168: “In the light of the factors mentioned by the Commission in the Privacy Shield Decision and the referring court’s findings in the main proceedings, the referring court harbours doubts as to whether US law in fact ensures the adequate level of protection required under Article 45 of the GDPR, read in the light of the fundamental rights guaranteed in Articles 7, 8 and 47 of the Charter. In particular, that court considers that the law of that third country does not provide for the necessary limitations and safeguards with regard to the interferences authorised by its national legislation and does not ensure effective judicial protection against such interferences.”

¶ 179: “In that regard, as regards the surveillance programmes based on Section 702 of the FISA, the Commission found, in recital 109 of the Privacy Shield Decision, that, according to that article, ‘the FISC does not authorise individual surveillance measures; rather, it authorises surveillance programs (like PRISM, UPSTREAM) on the basis of annual certifications prepared by the Attorney General and the Director of National Intelligence (DNI)’. As is clear from that recital, the supervisory role of the FISC is thus designed to verify whether those surveillance programmes relate to the objective of acquiring foreign intelligence information, but it does not cover the issue of whether ‘individuals are properly targeted to acquire foreign intelligence information’.”

¶ 180: “It is thus apparent that Section 702 of the FISA does not indicate any limitations on the power it confers to implement surveillance programmes for the purposes of foreign intelligence or the existence of guarantees for non-US persons potentially targeted by those programmes.”

¶ 183:  “It should be added that PPD-28, with which the application of the programmes referred to in the previous two paragraphs must comply, allows for ‘“bulk” collection … of a relatively large volume of signals intelligence information or data under circumstances where the Intelligence Community cannot use an identifier associated with a specific target … to focus the collection’ . . .  That possibility, which allows, in the context of the surveillance programmes based on E.O. 12333, access to data in transit to the United States without that access being subject to any judicial review, does not, in any event, delimit in a sufficiently clear and precise manner the scope of such bulk collection of personal data.”

 

Related Posts

A New US-EU Safe Harbor Agreement Has Been Reached

Sunken Safe Harbor: 5 Implications of Schrems and US-EU Data Transfer

* * * *

This post was authored by Professor Daniel J. Solove, who through TeachPrivacy develops computer-based privacy and data security training. He also posts at his blog at LinkedIn, which has more than 1 million followers.

NEWSLETTER: Subscribe to Professor Solove’s free newsletter
TWITTER: Follow Professor Solove on Twitter.

Click here for more information about our GDPR training

GDPR Training TeachPrivacy 07