PRESS RELEASE: The invalidation of Privacy Shield casts legal uncertainty on startups

July 17, 2020
press release

[Brussels, 17 July 2020, contact: [email protected]] The invalidation of Privacy Shield by the European Court of Justice casts legal uncertainty over startups and scale-ups relying on transatlantic data flows. “The striking down of this transatlantic data transfer mechanism will effectively advantage bigger players who have existing Standard Contractual Clauses (SCC),” Benedikt Blomeyer, Director EU Policy, stated.

Privacy Shield has over 5,300 companies using it. Many of these are startups and almost all of them provide services for startups and the wider economy. One alternative, Standard Contractual Clauses, require significantly more upfront investments, which would make it harder for market entrants to compete.

Blomeyer adds: “Data flows are the bread and butter of a thriving startup ecosystem that challenges incumbents. We encourage political leadership that builds a better alternative that supports data flows, with a focus on providing a framework for startups to sign on to.”

“Policy makers supporting data flows should make a first step for a new framework, and reaffirm the European Union’s interest in global data flows.”

Allied for Startups is a worldwide network of over 40 advocacy organisations focused on improving the policy environment for startups. Our mission is to ensure that the voices of startups are heard in government. For more information on Allied for Startups including a full list of our network, visit the website at www.alliedforstartups.org