WASHINGTON- The U.S. Commerce Department and the European Commission have begun discussing how to create a privacy shield framework that would comply with the European Union top court's judgment last month that the current deal for transatlantic data transfer does not work, according to a Commerce statement.

"The U.S. Department of Commerce and the European Commission have initiated discussions to evaluate the potential for an enhanced EU-U.S. Privacy Shield framework to comply with the July 16 judgment of the Court of Justice of the European Union in the Schrems II case," according to the statement. "This judgment declared that this framework is no longer a valid mechanism to transfer personal data from the European Union to the United States." 

(Reporting by Lisa Lambert Editing by Chizu Nomiyama) ((lisa.lambert@thomsonreuters.com; +1 202 898 8328; Reuters Messaging: lisa.lambert.thomsonreuters.com@reuters.net))