Supreme Court Ruling Undermines EU‑US Data Privacy Framework

Overview

• The U.S. Supreme Court held that the Federal Trade Commission’s structural independence is unconstitutional, a ruling that removes the agency’s shield from direct presidential control.
• Privacy group Noyb, led by Max Schrems, has formally asked the European Commission to withdraw the 2023 EU‑US Data Privacy Framework because the decision relied heavily on FTC oversight.
• The Framework remains formally in force for now, so transfers are not automatically halted, but businesses must reassess transfer safeguards such as Standard Contractual Clauses and Binding Corporate Rules.
• The Court’s decision traces to President Trump’s removal of FTC commissioners and affirms the president’s removal power, which also puts U.S. mechanisms like the Data Protection Review Court under fresh doubt.
• If the Commission does not revoke the adequacy decision the dispute is likely to reach the European Court of Justice and take years to resolve, creating extended legal uncertainty for companies and EU citizens whose data flows to the U.S.