There are early indications that the U.S. and EU may have reached an agreement today with reports of a "political handshake" between the parties regarding international data transfers, one day after the deadline set by both parties. The parties have been in negotiations since the Court of Justice of the European Union's (CJEU) invalidation of the former U.S.-EU Safe Harbor Framework last October, and negotiations continued at a high level.

The EU Justice Commissioner Jourová briefed the European Parliament yesterday and is briefing the Article 29 Working Group today. Sticking points as of yesterday included three main issues: (1) the need for any individual privacy complaint made by a U.S. citizen to be addressed in some fashion—whether by the Federal Trade Commission (FTC) or an "Ombudsman" position that the U.S. reportedly offered to create; (2) U.S. Government surveillance of European's data; and (3) Judicial Redress, which is currently pending in the U.S. Senate.

While reports of the "handshake" need to be confirmed, news that an agreement is near is of great relief to both parties.  It is expected that there will be an allowable "transition" period for companies once the new agreement is released for compliance.

Holland & Knight is monitoring developments and will provide additional details as they become available.