The European Union's highest court, the European Court of Justice (ECJ), declared the agreement on the transfer of European personal data to the US invalid on 16 July 2020. According to the ECJ, the Privacy Shield Agreement does not comply with the general data protection regulation (GDPR) under EU data protection law. Even though the ECJ ruling is not valid for Switzerland, the uncertain starting position harbours potential for uncertainty for local companies and legal risks in cooperation with EU trading partners.
The Federal Data Protection and Information Commissioner, who is responsible in Switzerland, has taken note of the ruling and announced further clarifications. It is therefore to be expected that the Confederation will also terminate the separately concluded CH-US Privacy Shield Agreement and replace it with a new regulation. Although the current ruling of the ECJ is not directly applicable, there is now a need for action for companies that exchange or transfer personal data with US companies.
Next spring, the National Council and the Council of States will also discuss the settlement of differences regarding the revision of the Swiss Data Protection Act (GDPR). This is intended to ensure convergence with the EU's GDPR. Furthermore, the EU's recognition of equivalence of the current Swiss data protection law with the EU-GDPR is also still pending.
Even if the legal implications for Swiss SMEs cannot yet be clearly predicted, Swiss companies subject to the GDPR must now take the first steps to meet the necessary GDPR requirements of their EU trading partners. Companies which are not subject to the GDPR should also make appropriate preparations in view of the ECJ ruling and upcoming government decisions.
The steps now needed are internal analysis of data flows, data transfers, safeguard clauses and legal risk analysis. The latter in particular for services processing data in the US or hosting data from US companies. Even in the case of public cloud infrastructures with data centres in Switzerland or within the EU, it cannot be 100% guaranteed that no data will be processed in the US. SMEs should therefore rely on services that can guarantee data storage in Switzerland and are GDPR conform.
With our geo-redundant data centres in Switzerland, companies can rely on an integrated Swiss solution that offers GDPR conformity in a private cloud. By storing data in Switzerland, MTF Swiss Cloud guarantees compliance with all necessary guidelines now and in the future. This also applies in combination when using public cloud services. Our private cloud can be combined with public cloud solutions as desired without violating GDPR guidelines or being subject to the US Cloud Act. Regardless of whether Microsoft, Google or Amazon cloud services are to be used. This enables a carefree, GDPR-compliant and future-proof IT for your company.
On our website you will find more information about "Modern Workplace".
Our IaaS model offers professional cloud computing for SMEs and enterprises. With our own cloud data centres in Switzerland, we guarantee highly secure data storage and compliance with all regulatory guidelines. Our "As a Service" model enables a flexible and scalable private cloud environment for your company. This in a transparent, usage-based payment model without investment costs in new IT infrastructures on site.
You can find more information about the Business Cloud on our website.
VMware is the global market leader in the virtualisation of private clouds. The innovative solutions enable a perfectly coordinated private cloud environment and provide the necessary basis for modern and secure IT. Our two Swiss data centres are fully virtualised with VMware and we are one of the few VMware Cloud Verified Partners in Switzerland. This is how we ensure that your private cloud environment remains flexible, scalable and secure at all times.
Compliance with various guidelines and the ongoing digitalisation poses great challenges for many companies. By switching your on-prem solution to our certified, highly secure and fully virtualised private cloud, you can meet all the requirements for an agile IT environment. Thanks to the VMware virtualisation solutions that we use, such as vSphere, you receive a modern IT infrastructure in a transparent service model.
Would you like to learn more about VMware solutions in our cloud?