The European Court of Justice's ruling that deemed a 15-year-old data-sharing pact between the EU and US as invalid will mean many urgent changes in the industry and use of web and data centres. The decision cannot be appealed.
"Legislation permitting...access on a generalised basis to the content of electronic communications must be regarded as compromising the essence of the fundamental right to respect for private life," Europe's highest court said in a statement. The ruling has significant implications on how internet groups can operate in the 28-member bloc, and will likely force thousands of companies to overhaul their businesses to avoid breaking the law.
Matthew Fell, UK's CBI Director for Competitive Markets, said: "The ability to transfer data easily and securely between Europe and the US is critical for businesses in our modern data-driven digital economy.
"Businesses will want to see clarity on the immediate implications of the ECJ's decision, together with fast action from the Commission to agree a new framework. Getting this right will be important to the future of Europe's digital agenda, as well as doing business with our largest trading partner."