U.S., EU agree to new data privacy deal benefiting tech giants

• Tech giants such as Meta Platforms Inc. and Alphabet Inc’s Google are facing lawsuits in Europe regarding data transfers

The U.S. and the European Union reached a deal, called the Trans-Atlantic Data Privacy Framework, allowing data about Europeans to be shared to the U.S.

The deal would prove a big relief for tech giants such as Meta Platforms Inc. (NYSE: FB) and Alphabet Inc’s (NYSE: GOOG) Google which are facing lawsuits in Europe regarding data transfers.

U.S. President Joe Biden and European Commission President Ursula von der Leyen announced the deal on Friday.

In 2020, the EU’s Court of Justice had raised concerns about sharing European’s data to the U.S. saying EU citizens are not given proper means to challenge U.S. government surveillance of their data.

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“The United States has committed to implement new safeguards to ensure that signals intelligence activities are necessary and proportionate in the pursuit of defined national security objectives, which will ensure the privacy of EU personal data and to create a new mechanism for EU individuals to seek redress if they believe they are unlawfully targeted by signals intelligence activities,” said the official statement.

According to the deal, an independent Data Protection Review Court will be established for EU individuals to hear their claims.

Picture Credits: Getty Images