Oct 07, 2015

How will the European Court of Justice’s ruling that the EU-US data transfer pact is invalid impact cloud based businesses like Google and Facebook?

The European Court of Justice just ruled that the EU-US data transfer pact, which governs transfer us user data between the EU and US, is invalid because the US Government essentially has access to all of the private data and each EU country should be able to make its own rules about user privacy and the data collected involving its citizens. How will this impact American companies that have servers in the US but do business with European users and customers?
It could conceivably force those companies to physically store data in the EU.

From a Reuters story on this issue:
"...most multinationals, such as Facebook and Microsoft (MSFT.O), would probably be able to continue with business as usual as they already had alternative legal channels for transferring data to the United States.

Small- and medium-sized companies, however, face high costs to set up new agreements, which may deter many. U.S. data service and storage companies that work for larger multinationals are especially concerned that they will be replaced by European companies if U.S. multinationals cannot transfer their data, according to the Software Alliance, a trade group also known as BSA, that advocates for software companies."
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