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What are the benefits of participating in Privacy Shield?
Companies that participate in Privacy Shield will be able to offer to their EU business partners and affiliates a means to lawfully transfer personal data to the United States. Under EU law, these organizations cannot lawfully transfer personal data to entities in the United States without taking steps to assure that the U.S. entity will be able to adequately protect the information. The Privacy Shield will help these EU organizations comply with this legal obligation.
Since Safe Harbor was invalidated by the CJEU, many companies have been using Standard Contractual Clauses to legitimize transfers of EU personal data to the United States. The Privacy Shield can replace these Standard Contractual Clauses and some of the other complex contractual arrangements that are allowed as Safe Harbor alternatives under EU law.
In addition to receiving personal data from EU entities, Privacy Shield also will enable U.S. companies to more easily receive EU personal information from other Privacy Shield participants—so joining will make sense for a number of U.S. service providers. In addition, joining Privacy Shield is likely to give a general level of comfort to various EU (and non-EU) government regulators, officials, and business partners that a company takes seriously the privacy of personal data.