Facebook told it may have to suspend EU data transfers after Schrems II ruling

The preliminary suspension order follows a landmark ruling by Europes top court this summerwhich both struck down a flagship data transfer arrangement between the EU and the US and cast doubt on the legality of an alternative transfer mechanism certainly in cases where data is flowing to a non-EU entity that falls under US surveillance law.

Facebooks use of Standard Contractual Clauses to claim a legal basis for EU data transfers therefore looks to be fast running out of borrowed time.

The Irish Data Protection Commission has commenced an inquiry into Facebook controlled EU-US data transfers, and has suggested that SCCs cannot in practice be used for EU-US data transfers, Cleggs writes. While this approach is subject to further process, if followed, it could have a far reaching effect on businesses that rely on SCCs and on the online services many people and businesses rely on.

Businesses need clear, global rules, underpinned by the strong rule of law, to protect transatlantic data flows over the long term, Clegg goes on, before lobbying for regulatory leniency in the meanwhile, as Facebook continues to transfer EU data to the US in what he claims is good faith despite the acknowledged legal uncertainty and the complaint in question dating back well over half a decade at this point.

EU lawmakers warned recently that there would be no quick fix for US data transfers, despite some parallel Commission noises about working with the US on an enhanced replacement mechanism for the now defunct Privacy Shield.

Internally, Facebook considers the preliminary order and its future implications a big deal, it adds, citing one of its unnamed sources.