The Privacy Shield framework was established to facilitate transatlantic exchanges of personal data between the European Union and the United States. It aimed to provide a mechanism for companies to comply with EU data protection requirements while ensuring that individuals' privacy rights were respected.
However, the framework faced legal challenges and was invalidated by the Court of Justice of the European Union in July 2020. This ruling raised concerns about the adequacy of U.S. data protection laws, leading to ongoing discussions about new solutions for safe data transfers between the two regions.