With Safe Harbor Squashed, What’s Next for European Data Transfers?October 6, 2015 – In The News
Scott L. Vernick was quoted in the Compliance Week article, “With Safe Harbor Squashed, What's Next for European Data Transfers?” Full text can be found in the October 6, 2015, issue, but a synopsis is below.
On Tuesday, the European Court of Justice ruled that the Safe Harbor program that allowed data transfers between the United States and European Union was invalid, meaning options for meeting international data transfer requirements could soon change.
“There are 4,500 companies that make use of the safe harbor so obviously it could be quite disruptive,” says Scott L. Vernick, a noted privacy attorney. “I’m not sure there are a lot of good options.”
The ruling may also lead to U.S.-based businesses needing to use European cloud services or build overseas data centers.
“If you are transferring data so that you can engage in centralized accounting and financial operations, you would have to localize those operations,” Vernick said. “Your cost of doing business just got a heck of a lot more expensive.”
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