On July 16, 2020 the European Court of Justice ruled on the validity of two data transfer mechanisms: standard contractual clauses (SCCs) and Privacy Shield. While the validity of SCCs were upheld ensuring the transfer of personal data to data processors established outside of the EU, the court invalidated the Privacy Shield mechanism to transfer data to the U.S.

After the ruling the U.S. Chamber of Commerce issued a statement encouraging the U.S. Department of Commerce to work with their EU counterparts to swiftly develop a new suitable mechanism for cross-border data transfers.