Europe’s second-highest court upheld a transatlantic data transfer deal struck between the European Union and the United States, providing long-awaited legal certainty for thousands of companies that routinely move personal data across the Atlantic.
According to Reuters, the 2023 agreement replaced two earlier pacts struck down by the Court of Justice of the European Union (CJEU) over concerns about U.S. surveillance. The Luxembourg-based General Court dismissed a challenge brought by French lawmaker Philippe Latombe, who argued the deal failed to adequately protect Europeans’ rights to privacy and family life.
“The General Court dismisses an action for annulment of the new framework for the transfer of personal data between the European Union and the United States,” the judges said, adding that “the United States of America ensured an adequate level of protection” at the time of adoption.
The ruling is a relief for industries ranging from banking to pharmaceuticals and technology, which rely on transatlantic transfers for payroll, cloud services, and other commercial operations. Without a valid legal framework, such data flows risked being disrupted.
The European Commission, which negotiated the pact, argued it provided sufficient safeguards through measures including a new U.S. Data Protection Review Court (DPRC) overseeing intelligence activities. Judges agreed, noting U.S. signals intelligence was subject to judicial oversight by the DPRC.
Still, critics remain skeptical. Latombe criticized the appeal body as lacking independence, while Austrian activist Max Schrems — whose previous legal challenges struck down prior agreements — warned that a broader review of U.S. surveillance law could “yield a different result.”
Latombe may appeal the case, T-553/23 — Latombe v Commission, to the CJEU, which has the final word on EU law.
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