His parent company Facebook and Instagram, Meta, threatened to stop its European operations if EU regulators didn't allow the company to share them privacy of users with the United States.
The move was related to a decision of her Court Europeanof the Union, (Shrems II case), which declared the sharing of data (Privacy Shield) between the EU and the US, no longer legal.
On October 7, 2022, US President Joe Biden unveiled the new data protection agreement with the European Union, referred to as “Privacy Shield 2.0”, through an executive order.
The new agreement aims to clear the legal path for the data exchange between EU and US providers.
The executive order specifies the commitments that his country intends to implement in the agreement EU-US Data Privacy Framework – DPF to protect European users.
The US hopes to remedy a legal problem through the above Executive Order (EU-US Data Privacy Framework – DPF) which restores a data transfer mechanism under EU law to US companies – where, primarily, the business interests of large US technology and cloud providers were at risk due to GDPR.
It also aims to create greater legal certainty for companies using standard contractual clauses and binding corporate rules to transfer personal data from the EU to the United States.