After a three year impasse over the transatlantic transfer of Europeans’ personal information, the EU and the US have come to a new agreement that will restore the open exchange of consumer data. It’s a welcome change for the ad industry.
The EU and the US Monday reached an agreement on cross-border data transfers, bringing an end to a three-year stalemate over the issue. The decision restores the free flow of consumer data between the two jurisdictions – an exchange that supports much of the information economy and amounts to billions of dollars in trade. Transatlantic data transfers had been hamstrung by a 2020 decision by the EU’s highest court, the Court of Justice of the European Union, over concerns about US intelligence agencies’ access to Europeans’ data.
“The new adequacy decision and EU-US Privacy Framework is good news for advertisers and the broader ecosystem that have eagerly awaited a solution amidst the uncertainty surrounding transatlantic data flows,” says Arielle Garcia, chief privacy officer at IPG-owned ad agency UM Worldwide. It’s particularly promising in light of the EU’s May decision to fine Facebook and Instagram parent Meta with a whopping $1.3bn fine over unlawful data transfers to the US.
Read more in The Drum.