EU to Stay in Data Pact With U.S.

The European Commission has decided not to withdraw from the so-called 'Safe Harbor' agreement on data protection following a review of the trans-Atlantic data-sharing pact, according to a draft commission document.

Safe Harbor protects US companies that participate from being sued in Europe under the European Union's data protection directive. Instead, it allows breaches to be dealt with in the US, while offering the same protection for EU companies operating in the US. While the protections are reciprocal, the agreement primarily benefits US companies, by shielding them from lawsuits under EU legislation, which is tougher in this area than its US counterpart. "Given the weaknesses identified, the current implementation of Safe Harbor cannot be maintained," said the commission, which is the EU's executive arm. "However, its revocation would adversely affect the interests of member companies in the EU and in the US... Safe Harbor should rather be strengthened." The EU will discuss the shortcomings of the deal with US authorities. Officials aim to propose remedies for current shortcomings by summer and have them "implemented as soon as possible." Exceptions for national security should be used "only to an extent that is strictly necessary and proportionate," the document adds.

(Nov 27)