Kristen Zanoni  |  September 16, 2020

Category: Legal News

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Facebook "f" logo made up of fiber optic cables - data transfers

Irish regulators say Facebook’s data transfers to the U.S. break data protection laws in Europe, but Facebook is fighting back.

A probe into Facebook’s data transfers to the United States was launched last week by Ireland’s Data Protection Commission (DPC), according to a New York Times report.

While Ireland’s regulatory agency says the social media giant’s data transfer practices may have to be changed in Europe, Facebook disagrees.

Facebook might be forced to stop data transfers from its European users to the United States due to concerns about the Facebook data transfers not shielding users’ information from the U.S. government’s observation, according to the New York Times.

In Europe, Facebook’s data transfers are examined by the DPC. If the social media platform is found to be violating European data protection laws, the regulator can enforce a 4% fine on Facebook’s global profits.

According to the Irish regulators, Facebook’s method of using Standard Contractual Clauses (SCCs) for data transfers is illegal. Changing the operations for storing European data may be an enormous task.

Reuters reported that thousands of businesses use Standard Contractual Clauses to transfer European user’s data all over the world, Reuters reported. If the SCCs were banned, it would cause massive interruption to transatlantic data services. 

Facebook notifications bar - data transfersThe argument over transatlantic data transfers comes from Europe’s concerns about users’ data being surveilled by the U.S., according to Reuters. European citizens are protected by privacy laws that the E.U. worries could be violated. In addition, there are concerns the U.S. observation of users’ data could be too invasive.

Campaigners for online privacy have implicated the U.S. in the abuse personal information, according to Politico.

Many legal battles have been started in Europe due to privacy laws being breached. If DPC’s order for Facebook to suspend its transatlantic data transfers is successful, it could have an impact on other tech companies, such as Google.

“Facebook is knowingly in violation of the law since 2013,” privacy campaigner Max Schrems told Politico. “It seems now not even the DPC can deny that Facebook’s international data transfers are built on sand.”

An examination into the data transfers led the E.U.’s top court to strike down the decision to enact the Privacy Shield, a transatlantic agreement between the U.S. and Europe that would have granted data transfers between the two, according to Bloomberg. The Privacy Shield was cancelled after it was found that the European Union would not have adequate protection from U.S. spy organisations.

But Facebook is fighting back after Ireland’s DPC called the data transfers illegal in Europe.

Facebook launched legal action against the Irish regulator last week, according to Business Insider.

“A lack of safe, secure and legal international data transfers would have damaging consequences for the European economy,” Facebook said in a statement, according to Business Insider. “We urge regulators to adopt a pragmatic and proportionate approach until a sustainable long-term solution can be reached.”

Facebook has filed for a judicial review to nullify the DPC’s order to stop data transfers.

According to Reuters, a court spokesperson said that the judicial review was allowed. No court date has been set. 

Facebook has asserted that SCCs have been determined credible by the Court of Justice of the European Union, Reuters reported.

A Facebook spokesperson noted: “Businesses need clear, global rules, underpinned by the strong rule of law, to protect transatlantic data flows over the long term.”

What do you think will be the outcome of Facebook’s data transfers? Who do you agree with? Tell us in the comments.

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