Press Release: Data protection: Commission endorses ‘safe harbor’ arrangement with US

The European Commission has given Internal Market Commissioner Frits Bolkestein the go-ahead to seek the support of EU Member States for accepting the United States' proposed 'safe harbor' arrangement as providing adequate protection for personal data transferred from the EU to 'safe harbor' participants. Under the EU's data protection Directive, Member States must ensure personal data transferred to non-EU countries is 'adequately' protected.

The same Directive provides that the Commission may make a positive finding when the protection offered by a particular country meets this adequacy requirement. Following two years of discussion, the US is now ready to put in place an arrangement which the Commission considers to offer 'adequate' protection.

Before adopting a formal decision to this effect, the Commission must seek the support of a qualified majority of Member States. It must also consult their data protection commissioners and the European Parliament.

Once adopted the decision will be binding on all Member States and so constitute a strong guarantee against the interruption of data flows from the EU to 'safe harbor' particpants in the US. Approval procedures will take some time, but the arrangement should be finalised by the summer of 2000 and operational in the autumn.