SaaS technology companies in Europe that have U.S. subsidiaries or clients in the U.S. frequently ask us about data protection and data transfer between the U.S. and Europe. This issue is governed specifically by the Safe Harbor Principles Program (the “Program”) on the basis of an agreement dated on March 15, 2000 between the U.S. Commerce Department and the Directorate General of the European Commission. The Program enables U.S. businesses with physical presence in the EU or EU businesses with physical presence in the U.S. (“Companies”) to transfer personal consumer data gathered in the EU territory to affiliated U.S. entities or third parties without violating article 25 of Directive 95/46/EC on the protection of individuals with regard to the processing…

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