Henry Farrell:

If the ECJ rules that Safe Harbor is invalid, what next? Potential near-disaster for big U.S. e-commerce firms like Facebook, Google and Microsoft, which are heavily exposed to European markets, and rely on European citizens’ personal data. The death of Safe Harbor would mean that they were not able to legally export personal data, potentially crippling their business model. Nor could they substitute alternative arrangements (such as contracts), since these arrangements would not provide any protection from the NSA. Firms would of course protest volubly, and get the U.S. administration to fight on their behalf.

Interesting article showing the politically hot waters that companies like Facebook may potentially find themselves in. If the ruling is not as cited as above everything is normal. If it isn’t? Well that’s going to be very interesting.

Posted by Ben Brooks