The EU-US Privacy Shield is a framework for transatlantic exchanges of personal data for commercial purposes between the European Union and the United States. One of its purposes is to enable US companies to more easily receive personal data from EU entities under EU privacy laws meant to protect European Union citizens. The EU-US Privacy Shield is a replacement for the International Safe Harbor Privacy Principles, which were declared invalid by the European Court of Justice in October 2015.
In October 2015 the European Court of Justice declared the previous framework called the International Safe Harbor Privacy Principles invalid. Soon after this decision the European Commission and the U.S. Government started talks about a new framework and on 2 February 2016 they reached a political agreement. The European Commission published a draft “adequacy decision”, declaring principles to be equivalent to the protections offered by EU law.
The Article 29 Data Protection Working Party delivered an opinion on April 13, 2016, stating that the Privacy Shield offers major improvements compared to the Safe Harbour decisions, but that three major points of concern still remain. They relate to deletion of data, collection of massive amounts of data, and clarification of the new Ombudsperson mechanism. The European Data Protection Supervisor issued an opinion on 30 May 2016 in which he stated that "the Privacy Shield, as it stands, is not robust enough to withstand future legal scrutiny before the [European] Court".
On 8 July 2016 EU Member States representatives (article 31 committee) approved the final version of the EU-U.S. Privacy Shield, paving the way for the adoption of the decision by the Commission. The European Commission adopted the framework on 12 July 2016 and it went into effect the same day.
U.S. President Donald Trump signed an Executive Order entitled "Enhancing Public Safety" which states that U.S. privacy protections will not be extended beyond US citizens or residents: