The European Court of Justice, the European Union’s highest court, handed down a ruling on Oct. 6 that nixed the safe harbor previously open to U.S. companies transferring customer and employee data outside of Europe. The announcement was bad news for more than 4,000 companies that were signatories to the safe harbor agreement and now likely have to set up alternative ways of moving their data outside of the EU.
Relatively few companies have put in place other legal frameworks for these data transfers. But a few had the foresight to see that the 15-year-old safe harbor agreement between the U.S. and EU might not last forever. One was Sunnyvale, California-based NetApp Inc., a provider of data management and cloud storage solutions. Its experience creating binding corporate rules to govern data transfers from Europe, a safe harbor substitute, can be instructive for others that will now have to find their own way too.
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