Schrems v. Data Protection Commissioner (Joined by Digital Rights Ireland) [Schrems I] | Law Case

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Schrems v. Data Protection Commissioner (Joined by Digital Rights Ireland) [Schrems I]
European Court of Justice
Case C-362/14 (2015)

European Union regulations strictly control the transfer of personal data from data controlling entities in Europe to countries outside the EU referred to as third countries.

The regulations require third countries to ensure an adequate level of data protection.

In data protection commissioner versus Facebook Ireland Limited and Maximilian Schrems, the European Court of Justice considered whether the United States met this standard. In two thousand, the US and the EU negotiated an agreement called the Safe Harbor Principles to authorize private companies to transfer personal customer data from Europe to the states.

The European Commission issued a decision called an adequacy decision certifying that Safe Harbor guaranteed an adequate level of data protection for European citizens.

However, safe harbor allowed the American government unlimited access to personal data for national security and other purposes.

In two thousand thirteen, former government contractor Edward Snowden leaked information revealing that American security agencies engaged in extensive warrantless data collection and had direct access to the data held by major companies like Google and Facebook.

Austrian citizen, Maximilian Schrems, had a Facebook account. European Facebook users had to contract with Facebook Ireland, a Facebook subsidiary.

Facebook Ireland sent users' personal data to Facebook in the US. Following the Snowden league, Shremes filed a complaint with Ireland's data protection commissioner, that country's data supervisory authority. Schrems asked the authority to prohibit Facebook Ireland from transferring his data to the US because US law didn't adequately protect personal data.

The authority rejected Schrems' complaint because of safe harbor.

Schrems appealed to Ireland's high court, which requested an opinion on the safe harbor decision's validity from the European Court of Justice.

The European Court invalidated the decision and referred the case back to the authority.

Thereafter, the US and EU negotiated a new agreement called Privacy Shield. The European Commission issued an adequacy decision approving Privacy Shield. Privacy Shield was similar to Safe Harbor, but created an ombudsperson to investigate data privacy complaints from European citizens.

Again, however, Privacy Shield allowed the federal government unlimited access to personal data for national security reasons.

Schrems refiled his complaint. The authority referred the case to Ireland's high court, which again referred the case to the European Court of Justice for a preliminary ruling.

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