The legal-regulatory gap in data protection between the European Union and the United States of America – challenges and implications

In the era of global digitalization, the legal regulation of data protection has become a key challenge for international law and business. While the European Union establishes robust privacy standards through the General Data Protection Regulation (GDPR), the United States applies a fragmented approach through various federal and state laws, creating legal challenges in transatlantic data protection regulation. This paper analyzes the legal consequences of the regulatory gap between the EU and the United States, particularly in light of the annulment of the Privacy Shield agreement. Through comparative legal analysis and case studies, the paper explores how differing legal frameworks impact the global digital economy, user privacy, and international corporations. Special attention is given to the extraterritorial reach of the GDPR, its influence on U.S. legislation, and potential legal mechanisms that could contribute to regulatory harmonization. The paper highlights the need for harmonizing international data protection standards that establish a balance between legal security, privacy protection and encouraging innovation in the digital ecosystem.