Major economic associations are warning of substantial risks to transatlantic data traffic following a recent U.S. Supreme Court ruling, stressing that businesses require reliable legal frameworks. Dirk Jandura, president of the BGA Trade Association, told the Handelsblatt that the U.S. judgment undermines the guarantee of stability. He noted that the potential access rights of the American administration now increase risk for companies, calling this uncertainty damaging to the economy.
The Supreme Court effectively ended the independence of the U.S. regulatory agency, the FTC, at the end of June. Moving forward, the President can dismiss FTC commissioners without specific cause. Since the FTC plays a central role in the EU-U.S. Data Privacy Framework, the European Commission had based the approval for data transfers to the United States partly on the FTC’s independence. Jandura suggested that Brussels must act, stating that the EU Commission “must not allow businesses to be exposed to short- and medium-term legal uncertainties and subsequent economic risks,” while also demanding that data services from U.S. cloud providers must remain available.
The German Chamber of Industry and Commerce (DIHK) also voiced concerns for the business community. Stephan Wernicke, DIHK’s Chief Legal Officer, told the Handelsblatt that the current situation carries high liability risks for companies. He advised that companies review existing data transfers and secure themselves using standard contractual clauses, although he conceded the associated effort would be “considerable and legally difficult to manage.”
The Federation of German Industries (BDI) considers a reliable and legally secure transatlantic data flow essential for German industry. BDI expert Michael Dose urged the EU Commission “not to draw any premature conclusions.” Even if the data agreement were to collapse, data transfer would not automatically become illegal. However, the fallout would include “significant legal uncertainty, additional compliance burdens, investment impediments, and hurdles for digital business models.”
