From CNET: The operations of Facebook and many other US-based Web companies in Europe could be disrupted after a 5-year-old pact between the two regions was declared illegal.
The agreement that Facebook and others use to allow transfer of data about European citizens back to the US on Tuesday was ruled invalid by Europe's highest court. Known as "Safe Harbor," the arrangement, which was reached by the European Commission and US authorities in 2010, allowed companies to send user data back to the US without guaranteeing that the information would be protected from the eyes of the US government.
As part of its ruling, the European Court of Justice (CJEU) has tasked the supervisory authority in Ireland, where Facebook has its European headquarters, with investigating the social network's activities. At the conclusion of the investigation it will then have to decide whether the transfer of European users' data to the US should be suspended "on the ground that the country does not afford an adequate level of protection of personal data."
The ruling could have far-reaching implications for Palo Alto, California-based Facebook and other companies operating in Europe that rely on access to that user data.
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