European Court Decision Poses Data Challenges For U.S. Service Providers

Following a landmark Oct. 6 ruling by the EU’s highest legal authority, multinational travel service providers that house data in the United States are facing a supersize data management problem related to European Union-based customers. Under the Safe Harbor agreement, U.S. companies have self-audited their adherence to the EU’s stricter data privacy standards since 2000, but the European Court of Justice has ruled that agreement invalid. As an example of the battles ahead, German travel buyer's association VDR said its members need to reexamine contracts with all service providers to verify whether personal employees' data is adequately protected. VDR also suggested that service providers move data storage for EU-based customers to the EU.