âUnsafeâ Harbor: the impact for marketers

Yesterday, 6th October 2015, a significant judgement was reached by the European Union Court of Justice (EUCJ) to invalidate Safe Harbor, the primary agreement for the transfer of data between the EU and the US. While this will undoubtedly affect the trans-Atlantic technology market, it is likely that there will be repercussions for the digital and direct marketing industry as heavy users of third-party US technology service providers such as Google, Facebook, Twitter and Sales Force. On the back of the EUCJ judgement I have dug a little deeper to assess the real impact on marketers.

First lets provide some context; if you weren’t aware of Safe Harbor until today you’re not alone, despite the likelihood of it being part of your everyday digital life. In essence, Safe Harbor is a self-certification trans-Atlantic data protection agreement, that ensures the free and secure movement of EU citizen data between the EU and the US. The agreement is adopted by every US technology firm that we interact with on a daily basis as consumers.

The reason for the invalidation of Safe Harbor is due to a case brought to the EU Court of Justice by Austrian privacy campaigner Max Schrems. Schrems' case is built on the premise that, in light of the Snowden revelations (regarding NSA surveillance in the US), Safe Harbor does not provide adequate protection of EU citizen data. The Court has ruled in favour of Schrems, resulting in an immediate lack of a valid mandate for the free and secure transfer of data between the EU and the US.

While we are in the first hours of an unfolding saga it is quite clear that many of the big names in technology are playing down the EUCJ ruling and the impact it will have on global service delivery. The commentary coming out of Silicon Valley suggests that many of the larger technology providers such as Facebook, Sales Force, Box and GitHub either already have adequate data privacy terms that surpass Safe Harbor, or they are making immediate changes to that affect.

From a direct and digital marketing perspective we are expecting a business as usual scenario until the revised version of Safe Harbor is brought into play, which is now anticipated to be much sooner than scheduled. As marketers our role as heavy users of third-party US technology is to keep our finger on the legislative pulse and advise our clients, colleagues and partners of important changes as they arise.