"Privacy Shield is a huge confidence trick. It attempts to protect economic interests at the expense of personal privacy. The system maximises the flow of TransAtlantic data without the protections that Europe would demand from other countries. It is no better than the now discredited and unlawful Safe Harbour agreement. The difference is all in the branding," Davies said.
The Safe Harbor agreement was nixed against the backdrop of the former NSA employee Edward Snowden's leaks, which revealed extensive US spying on European allies, and widespread collaboration between US tech companies and the NSA.
"There is absolutely no doubt that after its implementation in August, legal challenges will be mounted against Privacy Shield. These challenges will most likely be successful because the very basis of this arrangement is unstable," Davies added.
The draft resolution of the EU-US Privacy Shield was presented by the European Commission in late February. The European Parliament adopted the resolution on May 26.