The conditions for transborder data flows may become more uniform in the EU under the proposed Data Protection Regulation, but restrictions on foreign data transfers are now appearing in new data privacy laws and regulations in several regions of the world, posing global compliance challenges.
German state data protection authorities have recently criticized both cloud computing and the EU-US Safe Harbor Framework. From some of the reactions, you would think that both are in imminent danger of a European crackdown. That's not likely, but the comments reflect some concerns with recent trends in outsourcing and transborder data flows that multinationals would be well advised to address in their planning and operations.
Mexico has joined the ranks of more than 50 countries that have enacted omnibus data privacy laws covering the private sector. The new Federal Law on the Protection of Personal Data Held by Private Parties (Ley federal de protección de datos personales en posesión de los particulares) (the "Law") was published on July 5, 2010 and took effect on July 6. IAPP has released an unofficial English translation. The Law will have an impact on the many US-based companies that operate or advertise in Mexico, as well as those that use Spanish-language call centers and other support services located in Mexico.
The European Commission has announced a new set of standard contractual clauses to be used in agreements with processors located outside the EU / EEA. The new SCCs represent an effort to better ensure privacy protection when European personal data are passed on to subcontractors in business process outsourcing, cloud computing, and other contexts of successive data sharing.