EU-US data transfer pact has been upheld by a European Union court, which dismissed a challenge brought by French lawmaker Philippe Latombe

The ruling on Wednesday confirmed that the 2023 Data Privacy Framework ensures an adequate level of protection for personal data exchanged between the EU’s 27 member states and the United States.

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This framework marks the EU’s third attempt at legally governing data transfers with the US after the previous Safe Harbor and Privacy Shield agreements were invalidated by the Court of Justice of the European Union following privacy challenges led by Austrian activist Max Schrems.

Latombe’s 2023 challenge argued that the pact violated EU data protection rules, particularly criticizing bulk data collection by US intelligence agencies on data in transit.

However, the General Court dismissed the case “in its entirety,” affirming the pact’s compliance.

Business groups, including the US-based Business Software Alliance, welcomed the ruling.

They emphasized that the decision provides vital stability and reassurance for businesses and consumers relying on seamless and secure transatlantic data flows.

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With this judgment, the EU and US continue to foster cooperation in digital data exchange while balancing privacy protections and commercial interests.