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European Union
TechPolicy

Meta, Google, other American tech giants face EU data blackout as ruling looms on their contracts to transfer vast amounts of user information to US

  • Ireland’s Data Protection Commission is soon to weigh in on the legality of so-called standard contractual clauses
  • These contracts are used by Facebook parent Meta, Alphabet’s Google and other tech giants to legally transfer swathes of user data to the US for processing

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Ireland’s Data Protection Commission has cast a doubt on the legality of so-called standard contractual clauses used by American tech giants to legally transfer user data rom Europe to the US. Illustration: Shutterstock
Bloomberg
Facebook parent Meta Platforms’ stark warning of a retreat from Europe may just be the start, as one of the region’s top privacy watchdogs prepares a decision that could paralyse transatlantic data flows and risk billions in revenue for technology giants.
Ireland’s Data Protection Commission, which polices the Silicon Valley tech giants that have flocked to the nation, is soon to weigh in on the legality of so-called standard contractual clauses (SCCs) used by Meta, Alphabet’s Google and others to legally transfer swathes of user data to the United States for processing.

Privacy experts said the imminent decision could eliminate one of the only remaining options for Meta and potentially thousands of other companies that rely on shipping vast amounts of commercial data across the Atlantic.

The Irish authority already cast doubt on the legality of the SCCs in an interim opinion, saying they failed a key test of protecting European citizens from the prying eyes of US agencies.

A pedestrian walks in front of the Meta Platforms sign at Facebook headquarters in Menlo Park, California, on October 28, 2021. Meta warned about the possibility of pulling its services from Europe amid an ongoing row over transferring user data from the continent to the United States. Photo: Agence France-Presse
A pedestrian walks in front of the Meta Platforms sign at Facebook headquarters in Menlo Park, California, on October 28, 2021. Meta warned about the possibility of pulling its services from Europe amid an ongoing row over transferring user data from the continent to the United States. Photo: Agence France-Presse
Such is the tension around the ruling, that Meta warned in its latest annual report that it will “likely be unable” to offer services, including Facebook and Instagram, in the European Union if it is unable to use SCCs.
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