LUXEMBOURG — Europe's top court ruled Tuesday that data stored on U.S. servers isn't safe because of government spying, a giant blow to companies such as Facebook that might need to change the way they handle private data from Europe.
The court's decision declares invalid a pact allowing unfettered transfer of data from Europe to the U.S. by thousands of companies.
The case was brought by an Austrian law student in the wake of revelations by former U.S. National Security Agency contractor Edward Snowden of the extent of the NSA's surveillance programs.
Max Schrems complained that U.S. law doesn't offer sufficient protection against surveillance of data transferred by Facebook to servers in the United States.
The verdict could have far-reaching implications for companies operating in Europe. Though it does not ban the transfer of data, it opens up the possibility that European regulators will be inundated by complaints by consumers, making it hugely difficult to do business.
See Wednesday's Arkansas Democrat-Gazette for full details.