Brussels to warn US on use of online data




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By FT

Brussels is warn the administration that tech companies such as Google, Facebook and risk losing decade-long exemption European privacy rules unless the US changes the way treats the online data of EU citizens.
A European Commission review of the “safe harbour” pact, which allows US tech groups operate in Europe without EU oversight, will conclude that Washington has improperly forced US companies hand over European customers’ data. Although the review – which will be revealed tomorrow – stops short of calling for the safe harbour agreement be scrapped, its wording strongly signals that the EU will move in that direction if the US does not change the way uses European customers’ data.
“The personal data of EU citizens sent to the US the safe harbour be accessed and further processed by US authorities in a way incompatible with the grounds on which the data was originally collected,” according to a draft version of the review obtained by the Financial Times.
“The commission has the authority . . . to suspend or revoke the safe harbour decision if the no longer provides an adequate level of ,” the review adds.
Ending safe harbour and subjecting US tech companies to EU privacy laws would wreak havoc on the likes of Google and Facebook and put them in a legal bind over Security Agency requests for data on EU citizens.
US law they would be forced to hand over the data, but doing so would breach EU rules.
companies they would be forced to ringfence European operations and data about local citizens in new legal entities.