BRUSSELS—The U.S. and the European Union reached a preliminary deal on controlling how digital data moves between their two markets, President Biden and European Commission President Ursula von der Leyen said Friday.
The deal, if concluded, could resolve one of the thorniest outstanding issues between the two economic giants and assuage concerns of companies with operations on both sides of the Atlantic. An earlier deal regulating trans-Atlantic data flows was deemed illegal by the EU’s top court in 2020.
Officials and observers on both sides of the Atlantic expect any new deal to be challenged in court again.
The European Court of Justice’s 2020 ruling was the second time that it deemed U.S. safeguards on Europeans’ data to be insufficient. The court said the U.S. didn’t provide EU citizens effective means to challenge U.S. government surveillance of their data.