Facebook fails to block ECJ data security case from proceeding

5 min read

This July, the European Court of Justice (ECJ) in Luxembourg will now hear a case to answer questions on whether the American government’s surveillance, Privacy Shield and Standard Contract Clauses, during EU-US data transfers, provides adequate protection of EU citizen’s personal information.

The ECJ set the case hearing after the supreme court of Ireland where Facebook’s international headquarters is located decided, on Friday, May 31st, 2019, to dismiss an appeal by Facebook to block the data security case from progressing to the ECJ. The Austrian Supreme Court has also recently rejected Facebook’s bid to stop a similar case.

If Europe’s Court of Justice makes a ruling against the current legal arrangements, this would majorly impact thousands of companies, which make millions of data transfers every day. Companies potentially affected, include human resources databases, storage of internet browsing histories and credit card companies.

Background on this case

The case started with the Austrian privacy lawyer and campaigner, Max Schrems. In 2013, Schrems made a complaint regarding concerns that US surveillance programs like the PRISM system were accessing the data of European Facebook users, as whistleblower Edward Snowden described. His concerns also dealt with Facebook’s use of a separate data transfer mechanism Standard Contractual Clauses (SCCs).

Around the time Snowden disclosed about the US government’s mass surveillance programs, Schrems also challenged the legality of the prior EU-US data transfer arrangement, Safe Harbor, eventually bringing it down.

After Schrems stated that the transfer of his data by Facebook to the US infringed upon his rights as an EU citizen, Ireland’s High Court ruled, in 2017, that the US government partook in “mass indiscriminate processing of data” and deferred concerns to the European Court of Justice.

Then, in October of last year, the High Court referred this case to the ECJ based on the Data Protection Commissioner’s “well-founded” concerns about whether or not US law provided adequate protection for EU citizens’ data privacy rights.

Within all of this, there also exist people questioning the compatibility between US law which focuses on national security and EU law which aims for personal privacy.

Whistleblowers like Edward Snowden played a role in what has lead up to this case, and whistleblower attorneys and paraprofessionals continue working to expose fraud against the government through means of the False Claims Acts (FCA).

Why Facebook appealed the case

Although Irish law doesn’t require an appeal against CJEU referrals, Facebook chose to stay and appeal the decision anyway, aiming to keep it from progressing to court. The court denied them the stay but granted them leave to appeal last year.

Keep in mind that Facebook was already under a lot of scrutiny after playing a part in the Cambridge Analytica data scandal, which showed that up to 87 million users faced having their data compromised by Cambridge Analytica. One of the reasons Facebook said it wanted to block this case from progressing was that the High Court failed to regard the ‘Privacy Shield’ decision. Under the Privacy Shield decision, the European Commission had approved the use of certain EU-US data transfer channels. Another main issue here was whether Facebook actually had the legal rights to appeal a referral to the ECJ. Privacy Shield is also in question by French digital rights groups who claim it disrupts fundamental EU rights and will be heard by the General Court of the EU in July.

Why the appeal was dismissed

The five-judge High Court, headed by the Chief Justice Frank Clarke, decided they cannot entertain an appeal over the referral decision itself. In addition, he said Facebook’s criticisms related to the “proper characterization” of underlying facts rather than the facts themselves.

If there had been any actual finding of facts not sustainable on the evidence before the High Court per Irish procedural law, he would have overturned it, but no such matter had been established on this appeal, he ruled.

“Joint Control” and its possible impact on the case

In June 2018, after a Facebook fan page was found to have been allowing visitor data to be collected by Facebook via a cookie on the fan page, without informing visitors, The Federal Administrative Court of Germany referred the case to ECJ. This resulted in the ECJ deciding to deem joint responsibility between social media networks and administrators in the processing of visitor data.

The ECJ´s ruling, in this case, has consequences not only for Facebook sites but for other situations where more than one company or administrator plays an active role in the data processing. The concept of “joint control” is now on the table, and further decisions of authorities and courts in this area are likely.

What’s next for data security

Currently, Facebook also faces questioning by Ireland’s Data Protection Commission over numerous potential infringements of strict European privacy laws that the new General Data Protection Regulation (GDPR) outlines. Facebook, however, already stated it will take the necessary steps to ensure the site operators can comply with the GDPR. There have even been pleas for Global Data Laws.

A common misconception exists that only big organizations, governments and businesses are at risk for data security breaches, but this is simply not true. Data security is important for everyone — now more than ever.

Your computer, tablet and mobile devices could be affected by attackers for their sensitive information, such as credit card details, banking details and passwords, by way of phishing attacks, malware attacks, ransomware attacks, man-in-the-middle attacks and more.

Therefore, bringing continual awareness to these US and global data security issues will enable stricter laws to be put in place.

Kayla Matthews writes about big data, cybersecurity and technology. You can find her work on The Week, Information Age, KDnuggets and CloudTweaks, or over at ProductivityBytes.com.

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