On 6 October 2015, the Court of Justice of the European Union (CJEU) declared the EU–US Safe Harbor framework invalid as a mechanism to legitimise transfers of personal data from the EU to the US. This decision effectively leaves any organisation that relied on Safe Harbor exposed to claims that such data transfers are unlawful and could have serious implications for transfers of personal data both within multinationals and to global service providers.
Safe Harbor was jointly devised by the European Commission and the US Department of Commerce as a framework that would allow US-based organisations to overcome the restrictions on transfers of personal data from the EU. However, since its adoption, Safe Harbor was fraught with challenges. Although the data protection requirements set out in the Safe Harbor Privacy Principles were meant to match the standards of protection of European law, its self-certification nature and the non-European style of its provisions have attracted much criticism over the years. In particular, the revelations triggered by Edward Snowden in 2013 about the US intelligence surveillance operations led the European Parliament to adopt a resolution seeking its immediate suspension. The European Commission had no choice but to reopen the dialogue with the US government to find a way of strengthening the framework and restoring its credibility.