Secure data flows between the US and the EU may soon become a reality
Published: October 23, 2022, 9:03 p.m. Updated: October 24, 2022, 2:44 p.m.US President Joe Biden has signed what appears to be the first major official step towards a new data transfer agreement between the US and the EU.Read more about digital sovereignty here The US government and the European Commission announced in March of this year that they would update the previous Privacy Shield framework to enable safe and secure data transfers between the US and the EU. The new US presidential order signed on October 7 is the first official step towards a Privacy Shield 2.0. Now it is the turn of the European Commission to review the content and propose a decision on the adequate level of protection in relation to the United States. The European Commission has not promised a date for when it will be ready, but some journalistic sources estimate that the process will take closer to six months, if all goes well. Among other things, the European Data Protection Board, EDPB, must give its opinion. A green light is required from a committee consisting of representatives of the EU member states. Finally, the European Parliament will also review the draft. – When everything is ready, data will be able to flow safely and securely between companies in the EU and the US that have been certified by the Department of Commerce according to the new framework agreement. However, whether the new agreement will also meet European privacy requirements remains a difficult question, which could be tried in the EU courts, says Wenche Karlstad, Head of Strategic Differentiation Programs, Tietoevry Connect.
Creates growth in the data economy
As a result of the increasing amounts of global information, the transatlantic data flows are crucial in the economic relationship between the EU and the US. Global data flows now contribute more to growth than trade in goods. The EU Commission estimates that the amount of data produced in the world is growing rapidly. Every 18 months, the amount of data doubles. According to EU estimates, the value of the data economy will increase to over 550 billion euros by 2025, which corresponds to 4 percent of the EU’s total GDP.
European initiative to increase digital sovereignty
It is important to be able to trust that the regulations are so good that sensitive data is protected from possible abuse. It should provide legal certainty for data transfer and be secured in a trusted environment to improve digital sovereignty for companies and countries in Europe and globally. How the EU will adopt and implement the agreement will be important for European citizens, society and companies. Many stakeholders, including the US tech giants, highlight the positive aspects of the presidential decree, such as increased data privacy for European citizens and legal certainty for companies. Some other stakeholders, including European consumer organisations, remain skeptical about whether the new agreement is sufficient to protect Europeans’ privacy and personal data.Tietoevry praises the European Commission for several new initiatives to increase European digital sovereignty and competitiveness in the global data economy.– We are members of the European cloud project Gaia-X, participate in security standardization groups for cloud services at the Nordic and European level, and also contribute to the public discussions about European digital sovereignty in the future, says Wenche Karlstad. – Awareness of the choices of cloud solutions in a multi-cloud landscape is crucial in this regard. It is ultimately about taking responsibility for the value of data sovereignty and our operations in a global digital economy.Read more about digital sovereignty here The article is produced by Brand Studio in collaboration with Tieto Evry and not an article by Dagens industri