LONDON (Bywire News) - Facebook’s data transfers have come under renewed scrutiny as Ireland’s data watchdog says it expects to consult fellow EU regulators in April on its investigation into Facebook’s data transfers. The announcement raises the prospect of a decision that could hamper Facebook’s transatlantic business operations if flows of data into the EU are banned.
In 2020, Europe’s highest court ruled that an EU-US data transfer agreement was invalid, citing surveillance concerns. This prompted Ireland’s Data Protection Commission to provisionally order that the mechanisms used by Facebook to move data from EU users to the US could not ‘in practice be used.’
Facebook challenged the order in the High Court and has raised the possibility that it may have to suspend operations in the EU causing the order to be frozen. However, last May Facebook’s claim was dismissed in court and the order was resumed.
The decision could have massive consequences not just for Facebook but also for other tech companies. According to the DPC, Europe’s leading regulator for Facebook in the EU, as well as other tech companies, issued a preliminary decision on Monday giving Facebook’s parent company Meta 28 days to respond. However, they have declined to provide details of their revised findings. EU law requires the DSP to share the ruling with concerned EU supervisory authorities and consider their views before issuing a final verdict.
A DPC spokesperson said the revised findings would be shared with other EU regulators in April.
A spokesperson for Meta confirmed it had received the revised version and reiterated the company’s opposition to the decision.
"Suspending data transfers would be damaging not only to the millions of people, charities, and businesses in the EU who use our services but also to thousands of other companies who rely on EU-US data transfers to provide a global service," she said.
"A long-term solution on EU-US data transfers is needed to keep people, businesses and economies connected.”
(Writing by Tom Cropper, editing by Klaudia Fior)