"prevent European Union regulators from restricting data transfers by companies such as Google and Amazon across the Atlantic."
The regulators wouldn't restrict data transfer - the existing Directive does. The question is not whether the Data Protection agencies can or not restrict data transfers, but whether the courts consider that this new agreement allows companies to comply with the Directive.
The regulators wouldn't restrict data transfer - the existing Directive does. The question is not whether the Data Protection agencies can or not restrict data transfers, but whether the courts consider that this new agreement allows companies to comply with the Directive.