Europe's highest court just rejected the 'safe harbor' agreement used by American tech companies

Advertisement

Advertisement
mark zuckerberg sad upset

David Ramos/Getty Images

Mark Zuckerberg.

The European Court of Justice has just ruled that the Safe Harbor agreement, which is used by American startups to transfer data between the US and Europe, is invalid.

What this means is that companies such as Facebook and Twitter may now need to host European user data in Europe, rather than hosting it in the US and transferring it over.

Here's the press release from the European Court of Justice:

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

ECJ Safe Harbor

ECJ

Advertisement

The European Court of Justice has also suggested that Facebook's European user data should stop being transferred to servers in the US:

The ruling comes after privacy advocate Max Schrems brought a case against Facebook in Ireland. He said his privacy had been violated by the NSA's mass surveillance programs first revealed by whistleblower Edward Snowden. Schrems is Austrian, but brought the case against Facebook in Ireland because the company's European headquarters are in Dublin.

Here's Schrems at the European Court of Justice today awaiting the ruling:

Advertisement

The Data Protection Commissioner, Ireland's data regulator, rejected his case because it was bound by a legal agreement called the Safe Harbor agreement - which Schrems subsequently appealed, resulting in the current European Court of Justice case.

NOW WATCH: This 3-minute animation will change the way you see the universe