Facebook faces 'devastating' EU-to-US data transfer ban

Ireland's High Court has dismissed Facebook's bid to block a European Union privacy regulation - created by the Irish Data Protection Commission (IDPC) - that could interrupt the flow of data from the EU to the US.

The case has huge potential operational significance for Facebook, which may be forced to store European users' data locally if it's ordered to stop taking their information to the U.S. for processing.

The case stems from EU concerns that U.S. government surveillance may not respect the privacy rights of EU citizens when their personal data is sent to the United States for commercial use.

Last September the Irish data watchdog made a preliminary order warning Facebook it may have to suspend EU-U.S. data flows. Facebook responded by filing for a judicial review and obtaining a stay on the DPC's procedure. That block is now being unblocked.

The commission still needs to submit a final draft of its order to EU privacy regulators, but if it's approved, it could have a widespread impact on all companies doing trans-Atlantic business online.

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