Cloud computing is technology which promises a lot of benfits to users of its services. Online services can provide huge amounts of storage space, which means that there is no need for users to have lots of storage space on their personal computers. This however poses new security threats, specially with data protection, which has always been an important aspect of cloud computing. Users can run into all sorts of problems while using cloud services for storing their data. There has been a lot of changes in the EU legislation recently, which confront this issue. In connection with transfering personal information from EU to USA, new agreement called Privacy Shield, has been agreed to replace previous Safe Harbor agreement. It gives companies, which have agreed to follow its principles and rules, legal basis, to transfer personal data from users in EU to USA, which can only be permitted when an adequate level of protection is guaranteed.