- American and European trade groups warn of great consequences if agreement on a new version of the EU’s Safe Harbour accord isn’t solidified soon.
- European Commission President Jean-Claude Juncker and others said in a letter to U.S. President Barack Obama that failure to reach an agreement could impact almost all financial transactions between the EU and the U.S.
- If an agreement is not reached by the end of January, EU privacy regulators say they may begin enforcement action against companies still transferring data between the two parties.
The EU's highest court struck down the original Safe Harbour agreement last October. At the time, the EU court said American companies were "bound to disregard, without limitation the privacy safeguards where they come into conflict with the national security, public interest and law enforcement requirements of the United States.”
The two parties have been trying to reach a new agreement since then. EU authorities have given them until the end of January to complete their negotiations and agree on a new pact.
In a letter, trade groups said the EU ruling jeopardizes all data transfer mechanisms.
If a new ruling is not reached soon, it could impact thousands of businesses and millions of users that transfer data — such as payroll and human resources information — between Europe and the U.S.