European Union (Privacy & Cybersecurity Update, Issue 2)

European Court of Justice to Decide About Binding Character of Safe Harbor Status

In a recent court ruling, an Irish court referred to the European Court of Justice ("ECJ") the question of whether the Commission's July 2000 decision on the U.S. safe harbor status is binding or whether the member states can conduct their own investigation in light of the factual developments since such decision. In essence, the issue concerns whether a company participating in PRISM (a U.S. government surveillance program) can still make use of its safe harbor status. Should the European Court of Justice hold that member states can conduct independent investigations, it would affect reliance by companies on a safe harbor status when transferring personal data to the United States.