Concluding an ambitious and balanced EU-US Free Trade Agreement and tapping into the full potential of the digital economy are both important priorities on the European Commission’s policy agenda. Given the rapid growth of the ICT sector and the attractive prospect for both EU and US technology companies to gain increased access to each other’s markets, both partners are keen to incorporate elements of the digital economy into the Transatlantic Trade and Investment Partnership (TTIP) negotiations. Enhanced transatlantic cooperation in this area could bring about economic opportunities beyond the digital sector itself. However, the free flow of data across borders is a challenging and sensitive issue in Europe. This Policy Dialogue addressed how the digital economy is currently taken into account in the TTIP negotiations, as well as the potential benefits and challenges associated with deepening transatlantic cooperation in this field.