Take-Aways (AI)
  • On Sep­tem­ber 3, 2025, the Gene­ral Court dis­missed Phil­ip­pe Latombe’s com­plaint against the EU-US Data Pri­va­cy Frame­work (DPF).
  • The court con­side­red the Data Pro­tec­tion Review Court (DPRC) to be suf­fi­ci­ent­ly inde­pen­dent and bin­ding, despi­te cri­ti­cism of its exe­cu­ti­ve nature.
  • The EGC found that mass sur­veil­lan­ce was not gene­ral­ly per­mis­si­ble eit­her insi­de or out­side the USA; EO 14086 and other rest­ric­tions were suf­fi­ci­ent guarantees.
  • Auto­ma­ted indi­vi­du­al decis­i­ons and data secu­ri­ty requi­re­ments were dee­med by the EGC to be suf­fi­ci­ent­ly cover­ed by sec­tor-spe­ci­fic pro­tec­tion mecha­nisms and tech­ni­cal measures.

The EU-US Data Pri­va­cy Frame­work (DPF) has allo­wed com­pa­nies and public aut­ho­ri­ties to Ent­ry into force on July 10, 2023to trans­fer per­so­nal data to reci­pi­en­ts in the USA cer­ti­fi­ed under the DPF. In Switz­er­land, the Fede­ral Coun­cil has adopted the equi­va­lent, the CH-US Data Pri­va­cy Frame­work, Sep­tem­ber 15, 2024 enac­ted.

Howe­ver, the DPF has been cri­ti­ci­zed as weak sin­ce the begin­ning, and the French MEP Phil­ip­pe Latom­be brought an action against the DPF befo­re the ECJ. The ECJ has now con­firm­ed the appro­pria­ten­ess of the DPF and the Latombe’s lawsu­it dis­missed (Judgment Case T‑553/23; curr­ent­ly only available in French and Portuguese).

The decis­i­on is not final and Latom­be has two months to appeal it to the ECJ.

Pre­de­ces­sors: Schrems I & II

As is well known, the DPF is a suc­ces­sor regu­la­ti­on in an effort to enable the eco­no­mic­al­ly neces­sa­ry trans­fer of per­so­nal data from Midd­le Earth (EU) to Mordor (USA):

  • Schrems I – Safe Har­borThe first attempt at such a regu­la­ti­on was the Safe Har­bor Agree­ment. The ECJ had 2015 in the Schrems I ruling 2015 over­tur­nedwith the fol­lo­wing key statements:

    73 […] Howe­ver, as the Advo­ca­te Gene­ral […] has poin­ted out, the expres­si­on ‘ade­qua­te level of pro­tec­tion’ must be under­s­tood as requi­ring that the third coun­try actual­ly ensu­res, by vir­tue of its natio­nal legis­la­ti­on or inter­na­tio­nal obli­ga­ti­ons, a level of pro­tec­tion of free­doms and fun­da­men­tal rights equi­va­lent to that gua­ran­teed in the Uni­on […]. equi­va­lent in sub­stance is. […] 

    81 Even if recour­se by a third coun­try to a system of self-cer­ti­fi­ca­ti­on does not in its­elf inf­rin­ge the requi­re­ment […] that an ade­qua­te level of pro­tec­tion must be ensu­red in the third coun­try con­cer­ned ‘by vir­tue of its natio­nal law or inter­na­tio­nal obli­ga­ti­ons’, the relia­bi­li­ty of such a system with regard to this requi­re­ment is essen­ti­al­ly based on the crea­ti­on of effec­ti­ve moni­to­ring and con­trol mecha­nisms, which make it pos­si­ble to iden­ti­fy and sanc­tion in prac­ti­ce any vio­la­ti­ons of rules ensu­ring the pro­tec­tion of fun­da­men­tal rights, in par­ti­cu­lar the right to respect for pri­va­cy and the right to the pro­tec­tion of per­so­nal data.

    87 […] the excep­ti­on in para­graph 4 of Annex I to Decis­i­on 2000/520 the­r­e­fo­re makes it pos­si­ble, based on inter­fe­re with the fun­da­men­tal rights of indi­vi­du­als for rea­sons of natio­nal secu­ri­ty, public inte­rest or United Sta­tes lawwho­se per­so­nal data is or could be trans­fer­red from the Uni­on to the United Sta­tes. In order to estab­lish the exi­stence of an inter­fe­rence with the fun­da­men­tal right to pri­va­cy, it is not rele­vant whe­ther the pri­va­cy infor­ma­ti­on con­cer­ned is of a sen­si­ti­ve natu­re or whe­ther the data sub­jects may have suf­fe­r­ed pre­ju­di­ce as a result of the interference ([…]).

    89 In addi­ti­on, Decis­i­on 2000/520. No deter­mi­na­ti­on of the exi­stence of effec­ti­ve judi­cial pro­tec­tion against such inter­fe­rence. As the Advo­ca­te Gene­ral sta­ted in points 204 to 206 of his Opi­ni­on, the pri­va­te arbi­tra­ti­on mecha­nisms and the pro­ce­e­dings befo­re the Fede­ral Trade Com­mis­si­on, who­se powers, descri­bed in par­ti­cu­lar in FAQ 11 in Annex II to the Decis­i­on, are limi­t­ed to com­mer­cial dis­pu­tes, rela­te to com­pli­ance by US com­pa­nies with the safe har­bor prin­ci­ples and can­not be applied in the con­text of dis­pu­tes con­cer­ning the lawful­ness of inter­fe­rence with fun­da­men­tal rights resul­ting from mea­su­res of Sta­te origin.

    92 Moreo­ver, the pro­tec­tion of the fun­da­men­tal right to respect for pri­va­te life at Uni­on level requi­res, abo­ve all, that the Limit excep­ti­ons to the pro­tec­tion of per­so­nal data and its rest­ric­tions to what is abso­lut­e­ly neces­sa­ry […].

    98 The­r­e­fo­re, wit­hout it being neces­sa­ry to exami­ne the con­tent of the ’safe har­bor’ prin­ci­ples, it must be con­clu­ded that Artic­le 1 of Decis­i­on 2000/520 inf­rin­ges the requi­re­ments laid down in Artic­le 25(6) of Direc­ti­ve 95/46 in the light of the Charter […].

  • Schrems II – Pri­va­cy ShieldThe second attempt was cal­led Pri­va­cy Shield, an ana­log­ous regu­la­ti­on for trans­mis­si­on to cer­ti­fi­ed US importers. In July 2016 ente­red into forceit was con­firm­ed by the ECJ in July 2020 over­tur­ned in the Schrems II judgment:

    105 […] Art. 46 (1) and Art. 46 (2) lit. c of the GDPR must be inter­pre­ted as mea­ning that the appro­pria­te safe­guards, enforceable rights and effec­ti­ve legal reme­dies requi­red under tho­se pro­vi­si­ons must ensu­re that the rights of indi­vi­du­als who­se per­so­nal data are trans­fer­red to a third coun­try on the basis of stan­dard data pro­tec­tion clau­ses are pro­tec­ted, enjoy a level of pro­tec­tion equi­va­lent in sub­stance to that gua­ran­teed in the Uni­on by the GDPR in the light of the Char­ter. […].

    176 Final­ly, in order to com­ply with the requi­re­ment of pro­por­tio­na­li­ty, accor­ding to which the excep­ti­ons and limi­ta­ti­ons rela­ting to the pro­tec­tion of per­so­nal data must be limi­t­ed to the ext­ent that they are neces­sa­ry to ensu­re the pro­tec­tion of per­so­nal data. Limit to what is abso­lut­e­ly neces­sa­ry must, clear and pre­cise rules on the scope and appli­ca­ti­on of the mea­su­re in que­sti­on and estab­lish mini­mum requi­re­ments so that the per­sons who­se data have been trans­fer­red have suf­fi­ci­ent gua­ran­tees to ensu­re effec­ti­ve pro­tec­tion of their per­so­nal data against the risk of misu­se. In par­ti­cu­lar, it must spe­ci­fy the cir­cum­stances and con­di­ti­ons under which a mea­su­re pro­vi­ding for the pro­ce­s­sing of such data may be taken in order to ensu­re that the inter­fe­rence is limi­t­ed to what is abso­lut­e­ly neces­sa­ry. The need to have such safe­guards in place is all the more important whe­re the per­so­nal data are pro­ce­s­sed automatically […].

    177 In this regard, Artic­le 45(2)(a) of the GDPR pro­vi­des that, when asses­sing the ade­qua­cy of the level of pro­tec­tion offe­red by a third coun­try, the Com­mis­si­on shall, inter alia, “effec­ti­ve and enforceable rights of the data sub­ject” who­se per­so­nal data is trans­mit­ted are taken into account.

    180 […] lets Sec­tion 702 of the FISA in no way indi­ca­te that the aut­ho­rizati­on con­tai­ned the­r­ein to car­ry out moni­to­ring pro­grams for the pur­po­se of for­eign recon­nais­sance Rest­ric­tions exist. Nor is it appa­rent that gua­ran­tees exist for non-US per­sons poten­ti­al­ly cover­ed by the­se pro­grams. In the­se cir­cum­stances, this pro­vi­si­on […] not sui­ta­ble to gua­ran­tee a level of pro­tec­tionwhich is equi­va­lent in sub­stance to the level gua­ran­teed by the Charter […].

    184 Con­se­quent­ly, it can be assu­med that neither Sec­tion 702 of FISA nor E.O. 12333 in con­junc­tion with PPD-28 meet the mini­mum requi­re­ments under Uni­on law in accordance with the prin­ci­ple of pro­por­tio­na­li­ty, so that it can­not be assu­med that the moni­to­ring pro­grams based on the­se pro­vi­si­ons are limi­t­ed to what is strict­ly necessary.

    194 In accordance with the requi­re­ments ari­sing from Artic­le 47 of the Char­ter and the case-law cited in para­graph 187 of the pre­sent judgment, the exami­na­ti­on of whe­ther the ombuds­man mecha­nism refer­red to in the DSS decis­i­on is in fact capa­ble of com­pen­sa­ting for the rest­ric­tions on the right to judi­cial pro­tec­tion iden­ti­fi­ed by the Com­mis­si­on must be based on the prin­ci­ple that indi­vi­du­als must have the oppor­tu­ni­ty to seek redress befo­re an inde­pen­dent and impar­ti­al tri­bu­nalto obtain access to the per­so­nal data con­cer­ning them or to obtain the rec­ti­fi­ca­ti­on or era­su­re of such data.

    197 Accor­ding to this, the DSS decis­i­on Ombuds­man mecha­nism no legal recour­se to an insti­tu­ti­on which would pro­vi­de per­sons who­se data are trans­fer­red to the United Sta­tes with gua­ran­tees equi­va­lent in sub­stance to tho­se requi­red under Artic­le 47 of the Charter.

    199 It fol­lows that Artic­le 1 of the DSS Decis­i­on is incom­pa­ti­ble with Artic­le 45(1) of the GDPR, inter­pre­ted in the light of Artic­les 7, 8 and 47 of the Char­ter, and the­r­e­fo­re Inva­lid is.

Cri­ti­cism of the DPF

Against this back­ground, it is hard­ly sur­pri­sing that the DPF quick­ly came under fire:

  • The appro­pria­ten­ess decis­i­on was based pri­ma­ri­ly on the Exe­cu­ti­ve Order 14086 “Enhan­cing Safe­guards for United Sta­tes Signals Intel­li­gence Acti­vi­ties”, which sub­jec­ted recon­nais­sance mea­su­res to cer­tain rest­ric­tions and intro­du­ced a com­plaints pro­ce­du­re for tho­se affec­ted. The­se com­mit­ments allo­wed the EU Com­mis­si­on to assess the appro­pria­ten­ess of this legal frame­work despi­te Schrems I and II deter­mi­ne. Howe­ver, the fact that an exe­cu­ti­ve order is not a law and can the­r­e­fo­re be easi­ly repea­led, that the acti­vi­ties of the US intel­li­gence ser­vices are not suf­fi­ci­ent­ly rest­ric­ted on the basis of FISA 702, for exam­p­le, and that the Data Pro­tec­tion Review Court (DPRC) crea­ted by the exe­cu­ti­ve order is not inde­pen­dent (but part of the exe­cu­ti­ve branch) were par­ti­cu­lar­ly criticized.
  • Ano­ther basis for the appro­pria­ten­ess decis­i­on was the PCLOB. The Pri­va­cy and Civil Liber­ties Over­sight Board (see here) is ent­ru­sted with the pro­tec­tion of pri­va­cy in par­ti­cu­lar in the area of coun­ter-ter­ro­rism and is to over­see the DPRC. The Dis­mis­sal of the demo­cra­tic mem­bers of the PCLOB by Pre­si­dent Trump rai­sed the que­sti­on (also in the Euro­pean Par­lia­ment) whe­ther the DPF was thus depri­ved of a basis.
  • What also did not help was the now asses­sed Com­plaint by French Mem­ber of Par­lia­ment Phil­ip­pe Latom­be short­ly after the DPF came into force.

Most com­pa­nies have the­r­e­fo­re not reli­ed exclu­si­ve­ly on the DPF, but have addi­tio­nal­ly con­clu­ded the stan­dard con­trac­tu­al clau­ses for trans­fers to cer­ti­fi­ed US reci­pi­en­ts, with direct effect or con­di­tio­nal on a repeal of the DPF.

Dis­mis­sal of the Latom­be action

On Sep­tem­ber 3, 2025, the Gene­ral Court of the Euro­pean Uni­on (Gene­ral Court) dis­missed Latombe’s com­plaint. The Gene­ral Court’s rea­so­ning is essen­ti­al­ly as follows:

Inde­pen­dence of the DPRC

Latom­be had argued that the DPRC was not an inde­pen­dent and impar­ti­al court within the mea­ning of the Char­ter. In con­trast, the CFI came to the con­clu­si­on that the DPRC was suf­fi­ci­ent­ly inde­pen­dent, espe­ci­al­ly as its mem­bers are appoin­ted accor­ding to cri­te­ria com­pa­ra­ble to tho­se for fede­ral jud­ges, the mem­bers are not allo­wed to hold an exe­cu­ti­ve func­tion and the decis­i­ons of the DPRC are bin­ding. The super­vi­si­on by the PCLOB rein­forces this. The fact that the DPRC was not crea­ted by law does not detract from this. Howe­ver, the CFI did not address the rem­oval of some jud­ges by Trump.

Mass data coll­ec­tion by US intel­li­gence agencies

Accor­ding to Latom­be, the ade­qua­cy decis­i­on also vio­la­ted the Char­ter becau­se US intel­li­gence ser­vices could obtain per­so­nal data in bulk (“bulk coll­ec­tion”) wit­hout judi­cial aut­ho­rizati­on. The EGC is based on the distinc­tion bet­ween data pro­cu­re­ment in and out­side the USA: 

  • In the USA, data can only be obtai­ned for natio­nal secu­ri­ty pur­po­ses (inclu­ding for data trans­fer­red from the EU) in a tar­ge­ted man­ner, i.e. in rela­ti­on to a spe­ci­fic per­son, a spe­ci­fic account or ano­ther selector.
  • Out­side the USA, data is gene­ral­ly also coll­ec­ted in a tar­ge­ted man­ner, but may also be coll­ec­ted in bulk. This bulk coll­ec­tion is sub­ject to EO 14086 and EO 12333, which impo­se gua­ran­tees and rest­ric­tions. Unre­gu­la­ted bulk coll­ec­tion is not per­mit­ted eit­her insi­de or out­side the USA.

In the pre­sent case, the only que­sti­on is whe­ther mass coll­ec­tion is pos­si­ble for data that is trans­mit­ted on the basis of the DPF. FISA 702 is not rele­vant here becau­se FISA 702 does not con­cern mass collection.

With refe­rence to EO 14086, Latom­be had cri­ti­ci­zed, among other things, that the pro­cu­re­ment did not requi­re pri­or appr­oval by a judi­cial or admi­ni­stra­ti­ve aut­ho­ri­ty. This is true. Howe­ver, accor­ding to the ECJ, Schrems II does not requi­re this eit­her; sub­se­quent judi­cial review is gene­ral­ly suf­fi­ci­ent (as in this case by the DPRC). Even taking into account the case law of the ECJ and the ECtHR, pri­or aut­ho­rizati­on does not appear to be the only gua­ran­tee. As men­tio­ned, US law con­ta­ins suf­fi­ci­ent rest­ric­tions on mass pro­cu­re­ment and pro­vi­des for the right to an effec­ti­ve legal reme­dy – that is sufficient.

Auto­ma­ted indi­vi­du­al decis­i­ons and data security

Final­ly, Latom­be cri­ti­ci­zed the lack of an expli­cit gua­ran­tee that indi­vi­du­als would not be sub­ject to auto­ma­ted decis­i­ons. Howe­ver, Art. 22 GDPR only does not app­ly whe­re a cer­ti­fi­ed US com­pa­ny coll­ects data direct­ly in the EU wit­hout an offer being made in accordance with Art. 3 para. 2 GDPR. The­re are suf­fi­ci­ent sec­to­ral pro­tec­tion mecha­nisms here (e.g. in cre­dit, employment, insu­rance or heal­th­ca­re law). – The ECJ also took a dif­fe­rent view of the lack of requi­re­ments for tech­ni­cal and orga­nizatio­nal secu­ri­ty measures.