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ITA Says Safe Harbor Covers Cloud Technology

CLOUD COMPUTING—EU & U.S.

April 23, 2013

The U.S. Department of Commerce’s International Trade Administration (ITA) has published a report saying that U.S. companies’ compliance with Safe Harbor principles guarantees sufficient data protection, regardless of whether outsourcing contracts involve cloud computing, Out-Law.com reports. The ITA says because Safe Harbor is binding on all countries in the European Economic Area, EU data protection authorities cannot "unilaterally refuse to recognize Safe Harbor certification as a valid means of demonstrating that a service provider ensures an adequate level of data protection," contrary to an Article 29 Working Party opinion released last year. One expert suggests the ITA has “not recognized some regulatory burdens facing some clients of U.S. cloud providers.”
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