Multinational Companies Remain Wary of U.S.-EU Data-Transfer Pact

"Legal experts offered several reasons why companies aren’t embracing Privacy Shield, including the possibility that it, too, will be invalidated. “There is a legal uncertainty of the future of this arrangement because we saw what happened with Safe Harbor,” saidOmer Tene, vice president of research at the International Association of Privacy Professionals.

Another reason companies may be holding off, Mr. Tene said, is that another set of rules, known as the General Data Protection Regulation, is scheduled to take effect in May 2018, meaning the Privacy Shield regime may have a limited lifespan. The GDPR rules are much broader, including, for example, the so-called right to be forgotten that forces companies to delete personal data of European citizens upon request."