• The 15-year old Safe Harbour agreement between the EU and US was effectively thrown out by the Court of Justice of the EU (CJEU).
• US companies (and all MNCs) are now vulnerable to litigation and loss of customers over privacy concerns.
• While authorities have been tasked with coming up with an alternative by January, that is highly unlikely. Enterprises may need managed security and cloud providers to secure customer data in specific jurisdictions.
October 6 Decision
The CJEU, which interprets EU law to make sure it is applied in the same way in all EU countries, ruled that the Safe Harbour agreement in place for the last 15 years between the European Commission and US authorities did not offer the necessary legal guarantees that it was supposed to have. This ruling erased the quasi-legal framework under which US companies have been handling their EU customers’ data, potentially creating a legal minefield. Continue reading “EU Puts Global Businesses on Notice as Safe Harbour is Struck Down”