The EU–US Data Privacy Framework: The Third Transatlantic Data Deal Explained 2025

What is the Data Privacy Framework?

The EU–US Data Privacy Framework (DPF) is the latest solution for legally transferring personal data from the EU to the United States. Announced in July 2023, it’s essentially “Privacy Shield 2.0” or more accurately, the third attempt at an EU–US data transfer pact. Why three attempts? The two previous deals, Safe Harbor and Privacy Shield, were struck down by the EU’s highest court (in 2015 and 2020) over concerns that EU citizens’ data wasn’t safe from U.S. government surveillance. Those court cases (driven by Austrian privacy advocate Max Schrems) revealed that U.S. intelligence agencies had broad access to data, clashing with European privacy rights. So, the DPF is a do-over: an agreement aiming to fix those issues and restore trust so data can keep flowing across the Atlantic.

What changed this time around?

In one word: surveillance. The crux of the EU’s concern was the reach of U.S. government surveillance programs. To pave the way for the DPF, the U.S. made substantial changes to its intelligence-gathering rules via an Executive Order in late 2022. These changes impose new limits and safeguards on how U.S. intelligence agencies (like the NSA, CIA, FBI, etc.) can access data specifically, they must ensure any data snooping is “necessary and proportionate” to national security needs. In other words, no more bulk indiscriminate collection of Europeans’ data (at least on paper). Moreover, the U.S. set up a brand-new independent tribunal called the Data Protection Review Court. This court allows EU individuals to seek redress if they believe their personal data was unlawfully accessed by U.S. intelligence. The existence of an actual court-like mechanism for Europeans is a big deal, it aims to answer the EU court’s complaint that Privacy Shield didn’t give EU folks any effective way to challenge U.S. surveillance.

Aside from government access issues, the commercial aspects of the DPF are quite similar to the old Privacy Shield. U.S. companies can self-certify that they comply with a set of privacy principles (like data integrity, purpose limitation, etc.). Once certified under DPF, a company can receive personal data from Europe without having to adopt special contract clauses or other transfer safeguards. Essentially, the European Commission’s approval of DPF means it considers the U.S., for these certified companies, as providing “adequate” data protection. That restores an easy legal avenue for data flows: no more legal limbo like after Privacy Shield’s invalidation. Companies that were already Privacy Shield-certified just had to update their paperwork to transition to the DPF, since the principles are largely the same (with minor tweaks to reference GDPR and improve transparency). The DPF also introduced more transparency about how individuals can exercise their rights or complain, addressing some EU concerns about clarity.

Why it matters for CIPP/E and CIPP/US candidates:

The DPF is a hot topic in privacy and very likely to show up in your studies or even exam questions. For CIPP/E (Europe-focused) folks, international data transfers are a core part of GDPR knowledge. Knowing the history – Safe Harbor, Privacy Shield, Schrems I & II and what the new DPF entails is important. You’ll want to remember key points like the July 10, 2023 adoption date, and the fact that this is an adequacy decision by the European Commission. “Adequacy” means the EU officially deems the U.S. (for DPF members) as essentially equivalent in data protection. Also, be aware of the skepticism around DPF: noyb (Schrems’ organization) filed a legal challenge almost immediately, arguing the framework still isn’t up to EU standards. This ongoing saga could mean that by the time you’re reading this, the DPF might be under review by EU courts again. It’s the privacy story that never quite ends!

For CIPP/US candidates, you might wonder why an EU-U.S. deal matters in a U.S. exam. But today’s reality is that many U.S. businesses deal with global data. The DPF is directly relevant if you work for a company that handles data from Europe, which is very common. It’s also a prime example of how U.S. privacy and security laws intersect with international requirements. In the CIPP/US body of knowledge, understanding concepts like cross-border transfers and mechanisms (even if not U.S. domestic law) can give context to federal laws and the direction of U.S. policy. Plus, the DPF showcases some key privacy principles in action: oversight, individual rights, and the balance between national security and privacy.

In practical terms, the DPF’s rollout is good news for businesses. It reduces the compliance burden of using alternative tools like Standard Contractual Clauses for EU data imports. However, privacy professionals are also advising caution – until it’s certain the DPF will survive court scrutiny, many companies are adopting a “belt and suspenders” approach (for instance, getting certified under DPF but also still maintaining SCCs as a backup). This cautious optimism is something you might discuss in your training or even within exam hypotheticals. After all, privacy pros must both know the law and anticipate what could change. For now, the DPF stands as a critical development bridging the EU and US, reflecting a broader effort to reconcile different privacy philosophies across the pond.