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By Sam Schechner Facebook Inc. and other tech giants are awaiting an Irish ruling that could help determine whether, and how quickly, they have to suspend the flow of data about European Union residents to computer servers in the U.S. In the balance is billions of dollars of business in the cloud-computing, social-media and advertising industries. Ireland s High Court is expected to rule Friday on Facebook s bid to derail a preliminary decision on data flows that it received in August from Ireland s Data Protection Commission, the lead EU privacy regulator for Facebook and other companies that have their European headquarters in the country. The preliminary decision, which hasn t been finalized because of Facebook s procedural challenge, could force the social-media company to suspend sending personal information about EU users to Facebook s U.S. servers.
By Syndicated Content
May 14, 2021 | 10:22 AM
DUBLIN (Reuters) – Facebook said on Friday it would defend its compliance with European Union privacy laws after the Irish High Court threw out its objections to an investigation opened by the Irish Data Protection Commission (IDPC).
“We look forward to defending our compliance to the IDPC, as their preliminary decision could be damaging not only to Facebook, but also to users and other businesses,” a Facebook spokesperson said.
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Facebook loses last-ditch attempt to derail DPC decision on its EU-US data flows
Facebook has failed in its bid to prevent its lead EU data protection regulator from pushing ahead with a decision on whether to order suspension of its EU-U.S. data flows.
The Irish High Court has just issued a ruling dismissing the company’s challenge to the Irish Data Protection Commission’s (DPC) procedures.
The case has huge potential operational significance for Facebook, which may be forced to store European users’ data locally if it’s ordered to stop taking their information to the U.S. for processing.
Ireland’s data regulator can proceed with an inquiry that could lead to a ban on Facebook’s data transfers from the European Union to the United States, the country s High Court ruled on Friday. Ireland’s Data Protection Commissioner (DPC) launched an inquiry in August and issued a provisional order that the mechanism Facebook uses to transfer EU user data to the United States cannot in practice be used .
Facebook had challenged both the inquiry and the Preliminary Draft Decision (PDD), saying they threatened devastating and irreversible consequences for its business, which relies on processing user data to serve targeted online ads.