E.U. Court Invalidates Data-sharing Pact with U.S.
The ruling impacts an agreement allowing tech companies to transfer data to the U.S.
On July 16, 2020, the European Union’s (E.U.) top court ruled an agreement allowing big tech companies to transfer data to the United States is invalid, and that national regulators need to take tougher action to protect the privacy of users' data.
The ruling to invalidate Privacy Shield will complicate the transfer of a lot of data outside the EU, and it could require regulators to vet any new transfers due to concerns that the U.S. government can snoop on people's data for national security reasons.
It will no longer simply be assumed that tech companies like Facebook will adequately protect the privacy of its European users' data when it sends it to the U.S. Rather, the E.U. and U.S. will likely have to find a new agreement that guarantees that Europeans' data is afforded the same privacy protection in the U.S. as it is in the E.U., which has some of the toughest standards in the world. The case began after former U.S. National Security Agency contractor Edward Snowden revealed in 2013 that the American government was snooping on people’s online data and communications. The revelations included detail on how Facebook gave U.S. security agencies access to the personal data of Europeans.
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