McCoy Fatula, APCMcCoy
Located in Roseville, CA

Safe Harbor 2.0 Causing Confusion Over Data Transfers

Some of the biggest tech giants in the Silicon Valley and Bay Area, such as Facebook, Google and Apple are being held on a wire over international data transfer laws. Due to an increased focus in the media over privacy shields, user information and government data, the original Safe Harbor agreement was reviewed by Europe's highest court last October. When the agreement was struck down, both U.S. and European officials had to scramble to negotiate a new one.

The Stakes Are High for Many Tech Companies

What exactly are the stakes for tech companies in both the U.S. and Europe? The very operation of trans-Atlantic commerce. Without a privacy principles agreement in place, tech companies would have to change the very way in which they functioned.

Fortunately, earlier this month U.S. and EU officials were able to come to an agreement at the last minute. What is being called a Safe Harbor 2.0, the exact application and impact of this agreement is leaving tech companies from large corporations to small businesses in limbo. A violation could mean fines, something that could put a smaller tech company in serious trouble.

One thing that remains clear is the EU is requesting more transparency from U.S. companies. It is imperative that tech companies and businesses that deal with data transfer and handling of user information should take proactive measures.

An experienced international business attorney can help explain the impact of Safe Harbor 2.0 and other transactional issues. Reach out to our seasoned and knowledgeable attorneys who understand international contract law and more.

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