EU-US Safe Harbor agreement is invalid, court rules

The EU-US Safe Harbor agreement on the transfer of personal data is invalid, the Court of Justice of the European Union ruled Tuesday

The Safe Harbor agreement on which many businesses rely for the transatlantic transfer of personal data is invalid, the Court of Justice of the European Union has ruled.

EU law requires that companies exporting citizens' personal data do so only to countries providing a similar level of legal protection for that data. In the case of the U.S., the exchange of personal data is covered by the Safe Harbor Privacy Principles, which the European Commission ruled in July 2000 provide adequate protection. Businesses relying on the Safe Harbor agreement to transfer personal data from the EU to the U.S. could now be operating illegally.

While the decision will affect companies like Facebook and Google, it is bad news for small and medium-size companies transferring data from the EU to the U.S., said Mike Weston, CEO of data science consultancy Profusion.

"American companies are going to have to restructure how they manage, store and use data in Europe and this will take a lot of time and money," he said.

The CJEU  provided a summary of the ruling, the full text of which will be published later.

The court was asked to rule on a matter of law in a case relating to Facebook's transfer of EU citizens' personal data to the U.S.

The question it was asked was: Is a national data protection authority bound by the European Commission's decision of July 26, 2000, that the Safe Harbor agreement provides adequate privacy protection to personal data exported to the U.S., or may it investigate complaints about the level of protection provided in the light of events since that decision?

In a non-binding preliminary opinion last month the court's Advocate General, Yves Bot, went far beyond that question, saying that not only should the data protection authority investigate complaints, but also that the Safe Harbor agreement is invalid because it provides inadequate protection.

The court's Grand Chamber appears to have followed Bot's opinion.

The High Court of Ireland referred the question to the CJEU in June 2014, in a convoluted case filed by Austrian citizen Maximillian Schrems in October 2013.

In June of that year, Schrems filed a complaint with the Irish Data Protection Commissioner (DPC) disputing the level of privacy protection given to personal data about him held in the U.S. by Facebook. He made the complaint in Ireland because Facebook's European headquarters is there, putting its interactions with citizens of any EU country under Irish data protection law.

The DPC summarily rejected the complaint the following month, pointing to the Commission's 2000 decision that the Safe Harbor principles followed by Facebook were adequate. Schrems asked the high court for a judicial review of the DPC's decision, prompting the court to refer the question about Safe Harbor to the CJEU.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?