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The Privacy Shield Scheme: Should Your Company Join?

By Jonathan Armstrong and André Bywater

The Privacy Shield scheme was proposed in February 2016 to replace the Safe Harbor scheme, which was struck down by the Court of Justice of the European Union (CJEU) in the first Schrems case (Schrems 1) in October 2015.

The announcement of the creation of Privacy Shield in February 2016 was premature. But an announcement had to be made at the time, as a deadline set by the Article 29 Working Party (WP29) had expired at the end of January 2016. In February of that year, the EU Commission said it hoped that Privacy Shield would be finalized by the beginning of May 2016. Even that seemed ambitious, in part because of the criticism that Privacy Shield received from WP29 in April 2016, inter alia, that it did not offer adequate protection.

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