European court to rule on validity of GDPR Standard Contractual Clauses

  • The long-running challenge to the so-called EU Standard Contractual Clauses and the EU-US Privacy Shield, both used to lawfully transfer personal data outside of Europe, is now going to be heard by the European Court of Justice (“ECJ“) after an attempt to block the referral was rejected by the Irish Supreme Court.
  • The ECJ will now assess and opine on whether these methods of international data transfer satisfy the requirements of the GDPR, with the potential for either or both mechanisms to be struck down like the US Safe Harbor was in 2015.
  • If the court finds either method to be invalid, it would have a major impact on the cross border transfer of personal data, leaving companies with significant GDPR compliance issues and extremely limited options to be able to lawfully transfer data across national boundaries.

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