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Privacy and Cross-border Data Transfer: Challenges and Regulatory Responses

Updated: Apr 13, 2023

The General Data Protection Regulation (GDPR) was implemented in May 2018 with the aim of harmonizing data protection laws across the European Union (EU). The GDPR has far-reaching implications for businesses operating within the EU or dealing with personal data of EU citizens, regardless of their location.


One of the most complex issues surrounding privacy laws in general and GDPR in particular is the issue of transferring private information across borders.

The GDPR sets out strict rules regarding the transfer of personal data outside of the EU. These rules are intended to protect the privacy and security of personal data and ensure that individuals have control over their own information.


The GDPR applies to any organization that processes personal data of EU citizens, regardless of whether the organization is based in the EU or not.


Therefore, companies based outside the EU, including those in the USA, must comply with GDPR rules if they wish to conduct business with EU citizens.


Two agreements between the US and Europe, Safe Harbor, and Privacy Shield, were designed to facilitate the transfer of personal data between the two regions while ensuring compliance with GDPR regulations.


However, both agreements were eventually invalidated by the European Court of Justice due to concerns over the adequacy of data protection provided by US laws. As a result, US companies have been left scrambling to find a way to ensure that personal data can be transferred across borders without falling afoul of GDPR rules.


A federal American law known as the US CLOUD Act, which was enacted in 2018, is intended to facilitate the transfer of data across borders by streamlining the process for law enforcement to access data stored in other countries. However, concerns remain about the impact of the law on privacy and data protection, particularly in light of the invalidation of previous agreements.


To address the issue of transferring personal data across borders, the GDPR allows for a limited list of countries to be granted adequacy status. Adequacy status means that the European Commission has determined that a country provides an adequate level of data protection that is comparable to the GDPR. This means that personal data can be transferred to these countries without delay or additional safeguards.


Israel was granted adequacy status in 2011. However, the status is not permanent, and the European Commission can revoke it at any time if they determine that the country no longer provides an adequate level of data protection.


The potential loss of adequacy status could have significant consequences for our country's economy, so the government is working to ensure that data protection measures meet the required standards.


The Israeli Ministry of Justice has proposed new regulations that supplement the existing law with four privacy rights: the right to be forgotten, notification obligations, the obligation to reduce excess information, and the obligation to maintain the accuracy of information.


While these proposed regulations could go a long way in meeting GDPR standards and protecting personal information, they are designed to protect only the information of European residents. This raises concerns about discrimination against residents of our country and the preferential treatment of European citizens.


In conclusion, the issue of transferring personal data across borders remains a complex and challenging one for businesses and governments alike. While some progress has been made in addressing these challenges, more work is needed to ensure that personal data is protected and privacy rights are respected across borders.

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