European Court of Justice Privacy Rule Could Ruffle American Tech Companies

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A top European lawyer made a decision this morning that could prove a massive headache for American tech companies in Europe.

Advocate General Yves Bot, an advisor to the European Court of Justice (ECJ) has said the “safe harbour” agreement for transferring data between the US and EU is “invalid,” because of concerns over US spying.

Bot’s opinion isn’t legally binding, and the ECJ judges will make a formal ruling in the coming months. But as The Irish Times notes, the judges follow such opinions “in most cases.”

But if the 15-year-old legal agreement between the EU and the US is suspended by the ECJ, it could have significant consequences for American tech companies in Europe. It would open them up to significantly more scrutiny from privacy watchdogs within Europe, some of which have the power, according to Bots, to “[suspend] the transfer of that data.” Read more on BI

Adopted from BusinessInsider

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