In trying to understand the nuanced world of data privacy, I’ve been watching a critical transformation unfold in international data policy. The once-stable(ish) EU-US Data Privacy Framework is showing signs of strain as the U.S. executive branch flexes more power.
The Perfect Storm of Uncertainty
A few recent developments are challenging the delicate balance of cross-border data transfers:
Executive Power and Regulatory Flexibility
The US is signaling an expanded interpretation of executive authority over data policy. A recent declaration in the Federal Register by Secretary of State Marco Rubio suggests that “all efforts to control the transfer of data across US borders” could be considered a foreign affairs function. Translation? The executive branch might modify data transfer rules with minimal public input.
Institutional Independence Under Pressure
The Federal Trade Commission’s recent shake-up adds another layer of complexity. The White House’s illegal removal of Democratic commissioners, leaving the agency with only Republican members, raises serious questions about the independence of privacy enforcement mechanisms. The EU-US Data Privacy Framework depends on the perception of independent, robust privacy enforcement. The American Economic Liberties Project has noted that the framework is “expressly predicated on the US having an independent, bipartisan FTC to enforce privacy protections without fear or favor.”
European Commissioner Michael McGrath seems cautiously optimistic, emphasizing a commitment to the Data Privacy Framework. However, the framework’s foundation–independent and impartial review of data transfer mechanisms–is increasingly fragile.
What’s at Stake
This isn’t just bureaucratic reshuffling. The EU-US Data Privacy Framework facilitates over $1 trillion in annual trade. Its potential destabilization could have far-reaching consequences, including increased legal uncertainty for multinational corporations and potential disruption of digital trade.
The EU’s Balancing Act
The EU is showing signs of adaptation. Hints of GDPR modifications, particularly for small and medium-sized businesses, suggest a pragmatic approach. But the core challenge remains: How to maintain robust data protection while keeping international data flows smooth?
Key Takeaways for Privacy Professionals
- Stay incredibly informed about policy shifts
- Build flexible, adaptable data governance frameworks
- Prepare for rapid regulatory changes
Uncertainty is the Only Constant
The cross-border data transfer landscape in 2025 looks less like a stretch of clear highway and more like a winding, fog-covered mountain road. Each turn brings new challenges, new perspectives, and new opportunities for creative problem-solving.
For businesses and privacy professionals, the message is clear: flexibility isn’t just an asset–it’s a survival skill.
Sources and Further Reading
To research this post, I relied on the following articles from the International Association of Privacy Professionals (IAPP):
- “European commissioner discusses EU-US Data Privacy Framework, potential GDPR reform” (14 March 2025)
- “A view from DC: Can cross-border data policy change at will?” (21 March 2025)
- “Removal of FTC commissioners fuels uncertainty” (19 March 2025)
Visit the IAPP website for more breaking news on international data privacy law and cross-border transfers.