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Penny Pritzker

EU and US reach new data-sharing agreement

The European Union and the United States struck a deal Tuesday over data-sharing that will allow the likes of Facebook and Apple to continue sending people's information across the Atlantic — but a legal challenge to the pact is widely anticipated.

The sides had been trying to forge an agreement since October, when Europe's top court ruled against the previous pact — known as Safe Harbor — amid concerns that Europeans' personal data stored by companies in the U.S. might be exposed to spying by U.S. intelligence agencies.

The new deal, once put in place, potentially brings an end to a period of uncertainty that had raised the prospect of legal challenges...