On September 8, 2020, Switzerland’s Federal Data Protection and Information Commission (FDPIC) released an opinion on the Swiss-US Privacy Shield framework, declaring that it provides inadequate data protection under the Swiss Federal Act on Data Protection. Prompted by the July 2020 decision by the European Court of Justice that struck down the EU-US Privacy Shield Framework, the FDPIC decided to reassess its stance on Swiss-US data transfers.
Despite the decision, the FDPIC stated that it does not have the authority to strike down Privacy Shield, noting that, for now, companies in Switzerland can continue to share data with US companies in accordance with Privacy Shield provisions as long as the framework is not revoked by the US. The FDPIC also agreed with the European Court’s opinion on standard contractual clauses, stating that while data transferred to the US pursuant to such clauses would be allowed to continue, companies should proceed with caution.