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EU Court Bans The Transfer Of Personal Data To The US

EU Court Bans The Transfer Of Personal Data To The US

Thousands of companies may be forced to stop storing information about residents of the European Union on servers in the United States due to the decision of the European court of justice. It ruled that the transfer of data exposes Europeans to the risk of surveillance by the US authorities.

The unexpected decision of the European court of justice in Luxembourg cancels the data transfer agreement between the EU and the US, known as the Privacy Shield. The decision is a victory for privacy activists who oppose storing data about European citizens in the United States, the Wall Street Journal writes.

Meanwhile, it will create legal obstacles and could lead to disruptions in the operations of thousands of multinational companies that operate in the United States and Europe.

Depending on how the court's ruling is applied, some of them, including tech giants Facebook Inc., Alphabet Inc., and Apple Inc., may be faced with a choice: move data centers to Europe, which is a costly process, or stop doing business in the region.