Until now, data stored in German data centers in particular was considered safe due to the country's strict data protection guidelines. But now EU citizens must expect that their data will no longer remain solely in Germany when used by services from US companies.
It is important to note that in this case there is a distinction in the treatment of US citizens and people who live in the USA and people who do not belong to this group of people, such as EU citizens. The new legal situation requires the release of personal data of US citizens and people who live in the USA without the possibility of objection. In the case of EU citizens and people outside of the above-mentioned group of people, the US service providers can object and not release the data. However, the authorities can sue against this and the US courts have the explicit option of forcing the providers to release the data if this is "in the interest of the USA".
Everyone should therefore ask themselves the question “Where is the company based and is my data safe?” before using an online service. There may also be an alternative to the desired US service.
What impact does the law have on companies?
This US law has serious consequences for companies in particular. US service providers are also not obliged to inform affected individuals or companies about released data.
The CLOUD Act clashes strongly with the GDPR, EU law. When singapore phone number data this becomes binding on May 25, 2018, non-EU companies that process data from EU citizens will also be held responsible. The penalties for violating the GDPR are severe. Companies that use US services will find themselves in serious trouble as a result. For this reason alone, the use of US services will be very problematic once the GDPR comes into force.
The consequence of the responsibility towards one's own customers and the high data protection regulations often advertised by German companies is that online-based US services are no longer secure and data protection compliant. Companies that continue to rely on US services must therefore fear not only the legal consequences but also the trust of their own customers.
Microsoft itself sees the new law as only a temporary solution, and the final word has not yet been spoken. It can be assumed that the resulting conflicts will lead to changes.
It will also be interesting to see how the EU reacts. To our knowledge, this has not yet been announced.
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