Bonum Certa Men Certa

EPO and Microsoft Collude to Break the Law -- Part VII: Lipstick on a Pig…

Previous parts:



Safe Harbour pig
The Privacy Shield was derided by its critics as "lipstick on a pig"



Summary: The Schrems II judgment has significant implications for "cloud computing" services

As we saw in the last part, following the invalidation of the Safe Harbour by the CJEU in its "Schrems I" judgment a revised framework for regulating transatlantic exchanges of personal data was pulled out of the hat in the form of the Privacy Shield.



From its very inception the robustness of this arrangement was questioned and it was derided by its critics as "lipstick on a pig".

The hurried manner in which the Privacy Shield was cobbled together meant that it always smacked of being a flaky and legally unsound last minute political compromise between the EU and the Obama Administration.

In the eyes of its critics it was nothing more than a comfort blanket to calm post-NSA revelations nerves among non-US cloud services buyers, rather than a legally sound framework to protect data from intrusive examination by American intelligence services.

"The hurried manner in which the Privacy Shield was cobbled together meant that it always smacked of being a flaky and legally unsound last minute political compromise between the EU and the Obama Administration."The first signs that the revised arrangement might not last very long came in January 2017 during the early days of the Trump Administration when the incoming POTUS signed off on a new Executive Order on "Enhancing Public Safety in the Interior of the U.S."

Among other elements, this Executive Order directed US government agencies to “ensure that their privacy policies exclude persons who are not United States citizens or lawful permanent residents from the protections of the Privacy Act regarding personally identifiable information".

This prompted certain commentators, such as MEP Jan-Philipp Albrecht, to express concerns about the tenability of the Privacy Shield and to call for its suspension pending clarification of the legal implications of Trump's Executive Order.

The European Commission was quick to dismiss these concerns.

Others who remained sceptical about the tenability of the Privacy Shield arrangement confidently - and accurately - predicted that its days were numbered.

"The Schrems II judgment has significant implications for "cloud computing" services."The final nail in the coffin came in 16 July 2020 when the CJEU delivered its judgment in the case of Facebook Ireland Ltd. v. Maximillian Schrems – known as "Schrems II" – which not only invalidated the Privacy Shield agreement but also put other data transfer mechanisms into significant doubt.

The CJEU found that due to the possibility of access to personal data of EU citizens by US authorities, the Privacy Shield infringed EU data protection regulations because it did not provide adequate GDPR‑compliant protection of personal data.

Privacy Shield
The Schrems II judgment has significant implications for "cloud computing" services



The Schrems II judgment has significant implications for "cloud computing" services.

Private companies and public sector bodies have increasingly started to make use of cloud services in recent years and this trend is likely to continue in future. The majority of cloud services are provided by vendors located in the US. The servers for the purchased services are partly located in the US, partly in Europe.

And this is where it gets interesting.

Even if a server is located in the EU, US authorities may access the stored data. This access is possible because of the FISA (Foreign Intelligence Surveillance Act) 702 and the EO (Executive Order) 12.333 which apply to all Electronic Communication Service Providers headquartered in the US.

"The majority of cloud services are provided by vendors located in the US. The servers for the purchased services are partly located in the US, partly in Europe."Merely relocating the data to an EU-based region in these clouds is not sufficient, because the problem is not geographical in nature.

The decisive issue here is that US-owned cloud vendors are subject to US jurisdiction and US legislation can be used to them to hand out customer data to the US government, even if the servers storing that data happen to be located on foreign soil.

USA spying on EU
Even if a server is located in the EU, US authorities may access the stored data via FISA (Foreign Intelligence Surveillance Act) 702 and the EO (Executive Order) 12.333 which apply to all Electronic Communication Service Providers headquartered in the US.



In essence, the Schrems II judgment means that US-based cloud providers such as Google, Amazon Web Services (AWS), and Microsoft Azure cannot be used to store data about European citizens in a GDPR-compliant manner.

In December 2020 it was reported that the Swedish data protection authority had imposed the first GDPR-based fine for lack of adequate protection of sensitive data stored in a US‑based cloud platform after the Schrems II decision.

"In December 2020 it was reported that the Swedish data protection authority had imposed the first GDPR-based fine for lack of adequate protection of sensitive data stored in a US‑based cloud platform after the Schrems II decision."In that case the UmeÃ¥ University in Sweden was fined SEK 550,000 (approx. € 54,000) because it was found to have processed special categories of personal data concerning sexual life and health using storage in a cloud service of a US-based provider, without sufficiently protecting the relevant data.

The Swedish data protection authority referred to the Schrems II judgment and took the stance that per se a data transfer to the US triggers a high risk for personal data because data subjects are limited in protecting and enforcing their privacy rights.

In the next part we take a further look at the fallout from Schrems II in Europe and how the judgment has given new impetus to the discussion about European "data sovereignty". ⬆

Recent Techrights' Posts

No Noticeable Libera Chat Exodus After Code of Censorship (CoC) Scandal Earlier This Month
Libera Chat pissed off some people by unmasking the CoC's real purpose
The Local Staff Committee Munich (LSCMN) Speaks of Deterioration of Working Conditions at the European Patent Office (EPO)
"At least 3 days per week in the Office for an allocated office"
IBM's Anderon is Like Theranos, But Will Anybody at IBM or Anderon Be Imprisoned for This Billion-Dollar Scam?
Will anyone ever be held accountable for it?
 
IBM RAs: "It's on Me"
IBM has no respect for the workers and it tries to hide the layoffs
Gemini Links 15/10/2026: Literature, Funerals, and Devices
Links for the day
The Efforts to Criminalise Opposition to a Ponzi Scheme Sold as "Super Intelligence" (Plagiarism Engines, Disinformation Generators)
Cops are becoming combatants for slop bros, i.e. they use power to promote a Ponzi scheme
Clownflare Sees Most Requests in Africa Coming From Android (Linux)
Android is the dominant platform
IBM's "RA Season" is Nearly Upon Us, But Tens of Thousands Are Already Marked for Removal With PIPs (as "Low Performers")
IBM is a dying company
Microsoft Has Confirmed It Had a Plan to Cut Azure (or Azure Costs) by 20%
So basically... yes! Microsoft did have a plan to slash Azure.
Red Hat Silent Layoffs Seem to Carry on Throughout This Month
How much longer will these silent layoffs (e.g. PIPs) carry on for?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, October 14, 2026
IRC logs for Wednesday, October 14, 2026
Netflix and Its Newest Rival Carry 100 Billion Dollars in Debt
What sort of economy is this?
Egypt: GNU/Linux Still Measured at About 5%
Egypt is a prominent African nation and economy
Gemini Links 14/10/2026: Time Allocation, English as a Fourth Language, and "Reading News Sources" in Geminispace
Links for the day
DRM Giant Announces Giant Layoffs (Netflix’s Debt is Huge)
It's not like operational costs are decreasing, they're climbing fast.
Intercontinental Brigading - Part III - Reporting Harassment From America to British Police
Why are they so hostile towards (and afraid of) cops?
Gemini Links 14/10/2026: GemPub, Randogoth Forge F-Droid Repo, Oddμ, and Kolibri
Links for the day
Bluewashing as Silent RAs: A "journey that began at Neudesic [...] and continued as part of IBM" inevitably came "to a close"
IBM can be antagonistic and reckless with whatever it buys
Links 14/10/2026: Houthi Attacks on KSA and Airstrikes Near Sudan-Egypt Border
Links for the day
No Coronation for 'Cocaine King' Campinos (Not Yet Anyway)
A flash update suggests perils exist and we must all wait until December as the position for EPO President may open
In Reddit, Moderators of IBM Subs Are Allegedly on IBM's Payroll (IBM Can Censor Discussions About IBM)
There also seem to be PIP layoffs in India
If Worthless Companies Are Valued at a Billion Dollars in the Slop Industry, Then What Is the True Worth of 'Trillion-Dollar' Companies?
Definitely not a bubble!
It Sounds Like Microsoft Plans to Lay Off Over 2,000 Azure (Microsoft) Workers as the Datacentre Business Brings Nothing But Epic Debt
Trillions in losses is not a solid business plan
Microsoft XBox Won't Survive, Microsoft's CEO for This Perishing Business Turns to Slop
What the founder or father of XBox said about Asha Sharma earlier this year turns out to be accurate
Links 14/10/2026: So-called 'AI' Giants Go Bankrupt, "Military Will Hack the Election"
Links for the day
Indoor Season
we have more planned in order to improve navigation, accessibility, and workflows
Microsoft Demands That Staff Keeps Silent About the Mass Layoffs
Way to cause anger and ensure whistleblowers will go to the media
Microsoft Has Had Mass Layoffs in Azure Every Year Since 2020 and the Bleeding Continues Because It Misreports Earnings There
This is a bad week for Microsoft
Microsoft's International Mass Layoffs (Asia, Europe, Africa), Now Vietnam
A crisis that Microsoft is unable to hide
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, October 13, 2026
IRC logs for Tuesday, October 13, 2026
Gemini Links 14/10/2026: Ceiling Fan, Fascism, Democracy, and Slop Being a Huge Bubble
Links for the day
Reports of Stress and Layoffs at Microsoft, Some People Laid Off Under the Guise of "Ban" (Gift From the Administration) and Many Sacked in India
"pip and gvsa" layoffs in India
ITwire Became Slop and Spam
The site still exists, but it's not what it used to be
W3C Died 20 Years Ago, Now We Live in a Post-W3C Era. Linux Foundation is 'Slop Bros', Now Linux is Becoming Unfree.
Torvalds is on the same side as Epsteingate
We're Way Past the Point Where Companies Announce or Declare Mass Layoffs
Layoffs are becoming hidden
Linux Kernel to Hide the Slop to Avoid Backlash, Suggestion Made by Former Microsoft Employee While Another Former Microsoft Employee is Worst Slopper/Culprit in Linux
Did Torvalds listen to slop antagonists?
Solicitors Regulation Authority (SRA) Besieged by Blind Justice UK, Politicians Increasingly Involved
"Today we have written to Members of both Houses of Parliament"
Vance Has Helped Microsoft Implement Secret, Silent Layoffs
Nothing excites Microsoft more than means by which to discard many employees without an obligation to tell shareholders about it
To The Register MS, Microsoft is the Only Brand That's at the Main Menu!
Consider that the Editor of The Register MS is a longtime faithful Microsofter
Microsoft's Collapse Will Continue, It's Drowning in Debt Now
Expect many more mass layoffs
Legal Self-Sufficiency
The more impact our work has, the more legal bullying will come our way
Plans for Winter in Manchester and London
From many perspectives, we're satisfied with the certainty and robustness of UK hosting, it's just that we're not yet robust/resistant enough to DDoS attacks
Customer Support Experience in 2026
Because the customer is never right
Microsoft Shutdowns in Africa, Mass Layoffs Also Reported This Week
further shutdowns
Links 13/10/2026: More Plagiarism Lawsuit Over Slop and AirAsia Needs State Help
Links for the day
Intercontinental Brigading - Part II - An Outline of This Series
What's to come
Gemini Links 13/10/2026: Dopamine Nation, Planner and Fatigue, and Moderators
Links for the day
Links 13/10/2026: Norway Fines Microsoft and Cops Can Creep on Airbnb
Links for the day
When Computers "Expire" Because Certificates Expire
People who promote Restricted Boot are liars. They lie for a living.
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 12, 2026
IRC logs for Monday, October 12, 2026
Gemini Links 13/10/2026: Modern Science, Joplin, Luddites, and Lots More
Links for the day