The European Union's top court ruled Thursday that an agreement that allows thousands of companies—from tech giants to small financial firms—to transfer data to the United States is invalid because the American government can snoop on people's data.
The ruling to invalidate like Huawei. It highlights the growing importance of data as the basis of modern business and politics globally.
Data drives much of the world's biggest companies, like Facebook, Google, Alibaba and Amazon, and is also prized for national security to prevent extremist attacks, for example. Mining large sets of people's data has also become crucial to winning elections, such as the use of Facebook data for Donald Trump's presidential victory in 2016.
Alexandre Roure, a senior manager at Computer & Communications Industry Association, said the decision "creates legal uncertainty for the thousands of large and small companies on both sides of the Atlantic that rely on Privacy Shield for their daily commercial data transfers.
"We trust that EU and U.S. decision-makers will swiftly develop a sustainable solution, in line with EU law, to ensure the continuation of data flows which underpins the trans-Atlantic economy."
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