The EU Commission has just announced a review of the safe harbour provision. Viviane Reding, the commissioner in charge of data protection is looking into the provision, which was set up to help US companies deal with EU personal data protection. The Safe Harbour principles streamlines the process for  US organisations, allowing them to sign up to a list of principles regarding their handling of personal data.

Not so safe

Ms Reding is believed to be considering ending the current rule on safe harbour for US companies or adding new conditions, according to the Financial Times.  'The safe-harbour agreement may not be so safe after all,'  she told the FT, adding  that  it could be a loophole that enables organisations to move data to the US to take advantage of  'data protection standards that are lower than our European ones'.

More formalised system

The deal was originally developed by the US Department of Commerce in consultation with the EU.The EU has a more formalised system of Privacy legislation which was tougher than other parts of the world. Companies operating in the EU are not allowed to send personal data to countries outsoude the European Economic Area unless they can gaurantee that it will receive equal protection. The Safe Harbour Privacy Principles allow US companies to self-certify they can meet the EU standards.  Ms Reding is expected to report back before the start of next year.