Jenny Arlington Quoted in Payments Compliance on CJEU Data Privacy Ruling

Akin Gump counsel Jenny Arlington has been quoted in the Payments Compliance article “Payments Firms In Limbo After EU Court Pierces Data Shield.” The article reports on a decision by the Court of Justice of the European Union invalidating the EU-US Privacy Shield, under which businesses had previously been allowed to transfer data to the United States.

The article says that, while the decision is intended to prevent law enforcement or other agencies in third countries from accessing data belonging to EU citizens, the invalidation of the Privacy Shield has left firms in limbo. The European Data Protection Board, according to the article, said that a new framework should be achieved that guarantees an equal level of protection of personal data in the United States to that in the European Union, in line with the judgment.

Arlington, though, said, “It’s fair to say there is some skepticism over whether that type of new, amended framework would be possible.” In a sense, she noted, “the Privacy Shield and this case are almost ‘take two’ now, and whether ‘take three’ will be possible to satisfy the doubts that the court raised … . I think a new compliant framework will inevitably be subject to political negotiations.”

Arlington added that there would be support for another attempt at a comprehensive agreement in the United States and EU, due to the importance of transatlantic data flows. “It’s absolutely a mutual interest and also international data transfers are the reality of day-to-day business,” she said.

Arlington co-authored an article on the ruling for Law360, which can be found by clicking here.