Regulations

Cross-Border Data Transfers: Schrems II, Schrems III and the EU-US Framework

·8 min read

If your website uses Google Analytics, Cloudflare, Stripe, or any US-based service, you're transferring personal data across borders. The Schrems II ruling invalidated the EU-US Privacy Shield, and the new EU-US Data Privacy Framework (DPF) has specific requirements. Here's what you need to know.

Current Legal Landscape (2026)

Transfer MechanismStatusWhen to Use
EU-US Data Privacy FrameworkActive (since July 2023)For US companies certified under the DPF
Standard Contractual Clauses (SCCs)Active (2021 version)For any non-adequate country (universal fallback)
Binding Corporate RulesActiveFor intra-group transfers in multinationals
Adequacy decisionsActive for specific countriesTransfers to countries deemed adequate by EU Commission
Derogations (Article 49)Limited useOccasional, non-repetitive transfers with explicit consent

EU-US Data Privacy Framework

The DPF allows transfers to US companies that have self-certified with the US Department of Commerce. Key points:

  • Check certification: Verify your US vendor is DPF-certified at dataprivacyframework.gov
  • Not permanent: The DPF may face a "Schrems III" challenge. Max Schrems' NOYB organization has already signaled concerns
  • Limited scope: Only covers companies that actively certify — many smaller US vendors may not be certified

Standard Contractual Clauses (SCCs)

SCCs are the most widely used transfer mechanism. The 2021 version introduced a modular approach:

ModuleScenarioExample
Module 1Controller to ControllerSharing customer data with a US partner
Module 2Controller to ProcessorUsing AWS, Google Cloud, or Cloudflare
Module 3Processor to ProcessorYour processor uses a sub-processor outside EU
Module 4Processor to ControllerRare — data returns to a non-EU controller

Transfer Impact Assessment (TIA)

Since Schrems II, you must conduct a Transfer Impact Assessment before relying on SCCs. This evaluates whether the recipient country's laws provide "essentially equivalent" protection to EU law. For US transfers with DPF certification, this is simplified.

Adequate Countries

The EU Commission has recognized the following countries as providing adequate data protection. No additional transfer mechanism is needed:

  • Andorra, Argentina, Canada (commercial), Faroe Islands, Guernsey
  • Israel, Isle of Man, Japan, Jersey, New Zealand
  • Republic of Korea, Switzerland, United Kingdom, Uruguay
  • United States (only for DPF-certified organizations)

Practical Steps for Website Owners

  1. Map your data flows: Identify all services that receive personal data from your website. PrivacyChecker automatically discovers third-party services on your site
  2. Check vendor locations: Determine where each vendor stores and processes data
  3. Verify transfer mechanisms: For each non-EU vendor, confirm they have DPF certification or that you have SCCs in place
  4. Conduct TIAs: Document your assessment of each transfer's risk
  5. Update privacy policy: Disclose the specific transfer mechanisms you rely on (see our privacy policy guide)
  6. Consider EU alternatives: Where possible, use EU-based services to avoid transfer complexity entirely

Risk of Non-Compliance

Fines for illegal data transfers are among the highest under GDPR. Meta was fined €1.2 billion in 2023 for transferring EU user data to the US without adequate safeguards. While website owners face proportionally smaller fines, the legal risk is real — especially as privacy activists file systematic complaints.

Scan your website for free to discover all third-party services and their data locations, then assess your transfer compliance.

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