EU High Court To Review US-EU Data Safe Harbor Agreement
jfruh (300774) writes with news that a complaint in Irish Court against Facebook for possibly sharing personal data of EU citizens with the NSA has escalated to the European Court of Justice which will review the continuance of the U.S./EU Safe Harbor Framework in light of PRISM.
Under European laws, personal data of EU citizens can't be transferred to countries that don't meet EU standards for data protection. The U.S. doesn't meet those standards, but American companies have worked around this by using EU standards for the data of European citizens, even that data stored on servers outside of Europe. Now the EU's highest court will decide if this workaround is good enough — especially in light of revelations of the NSA's Prism data-mining program.
Considering that the USA don't even need it but could essentially siphon the data directly from European countries with the aid of European governments... does it really matter?
That's essentially pondering whether the front door should be locked when the back door is opened from the inside by those we employ to guard it.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
The decision by the Irish DPC not to investigate makes perfect sense - this case is essentially all politics, and nothing more. The finding is inevitably going to be that the existence of the NSA violates European data privacy laws, but there really isn't a whole lot the EU could do about it - they can't tell the US to shut down the NSA, and they can't revoke the ability of non-EU servers to host EU data without effectively creating a second Great Firewall. Nothing can ultimately be done about it, and so the only real result would be this "Europe-v-Facebook" group scoring some political points.
Yes, an U.S. based company could avoid the fallout. But is it worth it?
It was announced this week that GCHQ don't need permission to snoop on UK citizen's activity when the services being used are located abroad as they class it as "external communication" (for the likes of Facebook, Twitter and Google). It wouldn't surprise me in the light of recent events, if the UK government back this plan, to only turn around and say, "Yes you need to keep the data in Europe, but we don't want it here." just so they can continue to *legally* spy on the people via this "external" (overseas) communication loophole.
With the safe harbour agreement american companies basically "promise" to follow some rules related to privacy, which are compatible with European values. But to make such an approach effective, someone has to verify that the "promises" are real and eventually impose sanctions if they are not. That someone is -- in theory -- the FTC.
The problem with safe harbor is that it is been very weakly enforced. In the first decade since it was created, there has been no real enforcement action that I've heard of. This gives the impression that Safe Harbor is pretty toothless. FTC has only recently (2014) began to enforce this framework, because Europeans threatened to abandon it.
And leave behind a 500M people market? Abandon all their current contract and cloud services? I don't think so. The EU is the second biggest market after China.
Even if they do, several European companies will quickly fill the void (like in China) and the USA based companies will have an extra couple of competitors in the world.