Any EU based organisation who thought their EU originated confidential data was protected if residing on servers located in the U.S., will now be doubting that protection. Any number of agencies may have been able to access all of it. In short, the European Court of Justice (ECJ) has called for the invalidation of the Safe Harbor agreement between the US and the EU, citing that Safe Harbor does not sufficiently protect an EU citizens data that is stored in the U.S. and is hence subject to government surveillance. The ECJ has overturned the Safe Harbor agreement, thus resulting in a potential suspension of data transfer should a particular company not adequately protect user data.
Having done some research into this ruling and plagiarised some clear thinking out there on the web, I have concluded that while this decision does not spell an immediate end for Safe Harbor, it does give regulators the right to investigate and suspend data transfers if they don’t feel the data is significantly protected - potentially a major setback for businesses that want to collaborate across borders (including most eCommerce). Although negotiations between the U.S. and EU are already underway, ahead of any resolution to this current state of uncertainty, I’d like you to consider some of the following prevailing views:
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