Biden signs executive order with new framework to protect data transfers between the U.S. and EU

European Council President Charles Michel, President of the European Commission, Ursula von der Leyen and US President Joe Biden meet within EU -USA Summit in Brussels, Belgium on June 15, 2021.

A new framework to protect the privacy of personal data shared between the U.S. and Europe was signed by President Joe Biden.

A European court undid a previous version of the framework in 2020. The court found that the U.S. had an ability to spy on Europeans.

The case created enormous uncertainty about the ability of companies to transfer personal data from the European Union to the United States in a way that was consistent with EU law. The outcome made it necessary for U.S. companies to use different data transfer mechanisms on an ad hoc basis.

Privacy Shield 2.0 is meant to address European concerns of U.S. intelligence agencies. The White House said in a fact sheet that the U.S. is committed to implementing new safeguards to ensure that signals intelligence activities are necessary and proportional in the pursuit of national security objectives.

An independent Data Protection Review Court made up of members outside of the U.S. government will be able to help individuals in the EU with their data protection issues. The March fact sheet states that the body would have full authority to adjudicate claims.

The civil liberties protection officer in the Office of the Director of National Intelligence will investigate complaints before they reach the DPRC. It is subject to the independent body's assessment.

The executive order requires the U.S. intelligence community to update policies and procedures. The Privacy and Civil Liberties Oversight Board is instructed to examine those updates and conduct an annual review of the intelligence community's adherence to binding decision making.

Commerce Secretary Gina Raimondo said the EU-U.S. Data Privacy Framework will ensure the privacy of EU personal data.

A number of documents and letters from the U.S. government will be transferred to the EU.

The EU will conduct anadequacy determination of the measures. The sufficiency of the data protection measures will be assessed.

The report was contributed to by CNBC'sChelsey Cox.

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