The Court of Justice of the European Union upheld the legality of standard contractual clauses (SCCs) for transferring data following a dispute between Facebook and privacy activist Max Schrems, who has campaigned about the risk of U.S. intelligence agencies accessing Europeans’ data.

However, Europe’s highest court also said that privacy watchdogs must suspend or prohibit transfers via SCCs outside the EU if data protection in other countries cannot be assured.

The European Commission has since embarked on talks with EU privacy watchdogs to resolve the legal limbo for companies.

“My colleagues Vera Jourova and Didiers Reynders are working very, very hard to look at standard contractual clauses, at least for that to step in as an intermediate solution. They are very ambitious and hope that it can be in place before Christmas,” EU digital chief Margrethe Vestager told an event organised by Politico.

“Because the situation right now is not sustainable,” she said, citing some companies that have put data transfers on hold for now due to the legal risks.

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