Privacy group NOYB has echoed these concerns, noting that companies are exploring alternatives for hosting data within Europe due to the uncertainty surrounding the agreement's future.

Adding to the uncertainty, the framework was challenged in court by French politician Philippe Latombe just two months after its adoption, with a ruling anticipated later this year.

The European Court of Justice has previously invalidated similar agreements, including Privacy Shield and Safe Harbor, citing insufficient privacy safeguards against national security access.

The EU-US Data Privacy Framework, established in 2023, was built on commitments from the previous Democratic administration under President Joe Biden, allowing for deemed safe data transfers between the EU and the US.

However, there are growing fears that potential changes under President Donald Trump's administration could threaten the stability of this agreement.

The German Interior Ministry has expressed concerns about the future of the data transfer agreement, emphasizing the need for 'legally secure' data transfers vital for the German economy.

This reliance on US cloud services, including major providers like Amazon Web Services, Microsoft, and Google, underscores the importance of maintaining a robust data transfer framework.

In the absence of an adequacy decision, businesses may have to resort to alternative transfer methods such as standard contractual clauses, which can be cumbersome and time-consuming to review.

The European Commission has stated it will periodically review the data transfer agreement and has the authority to suspend or amend it if adequate protection is no longer guaranteed.

As this situation unfolds, the future of the EU-US Data Privacy Framework remains precarious, with significant implications for transatlantic data flows.