Facebook is appealing a provisional order from the Irish Data Protection Commission (IDPC), according to which the social media company would demand the suspension of data transfers between the US and the European Union. Bloomberg reported.
“A lack of secure and legal international data transfers would have detrimental consequences for the European economy,” Facebook said in a statement The edge on Friday. “We urge regulators to take a pragmatic and proportionate approach until a sustainable long-term solution can be reached.”
The IDPC sent a preliminary order to Facebook last month instructing the company to suspend data transmission to the US via EU users. The Wall Street Journal reported this week. The order is the first attempt by an EU regulatory authority to enforce a surprise decision by the EU Court of Justice in July with the Privacy Shield, a data exchange protocol that enabled American companies to transfer personal data about EU citizens to the US for processing , has been declared invalid.
In its July judgment, the EU court stated that Privacy Shield does not protect EU citizens from the US intelligence services̵
SCCs are a widely used protocol for international data transfers and are used not only by big technology companies like Facebook and Microsoft, but also by banks, technology giants, airlines and other companies. Clegg added in his post that the impact of the IDPC decision would “have far-reaching implications for companies that rely on SCCs”.
The provisional order aims to ensure that EU citizens’ data is not stored or processed on American soil, where it may be subject to American surveillance programs. However, Facebook argues that this could have unpredictable results and create practical problems for their operations in the EU. This could also signal broader data protection measures that would have wider implications for American social media companies operating in Europe.
Facebook is seeking a judicial review of the recent IDPC lawsuit as it argues the watchdog acted prematurely by publishing its conclusion ahead of the expected regulatory guidance from the European Data Protection Board.
Failure to comply with the Irish pre-order could result in fines of up to 4 percent of Facebook’s annual revenue, according to the US government WSJaround $ 2.8 billion.