The U.S. is starting to implement a deal with the European Union aimed at allowing information about Europeans to continue to be stored on U.S. soil, reducing a looming threat to thousands of companies with trans-Atlantic operations.
President Biden on Friday issued an executive order giving Europeans new rights to challenge U.S. government-surveillance practices against them, a central element of the preliminary deal that the U.S. and the EU first outlined in March. Now the European Commission, the EU’s executive arm, must approve the U.S. move to put the data-flow agreement, dubbed the EU-U. S. data privacy framework, into force—a process that could take roughly six months. The issue is drawing high-level attention because two previous data agreements were rejected by the EU’s top court, and this new pact is likely to face legal challenges.