U.S. Com­pa­nies Face More Restric­tions After Pri­va­cy Ruling Against Google

A decisi­on against Goog­le Ana­ly­tics in Aus­tria set the sta­ge for Euro­pean regu­la­tors to stop data flows to many Ame­ri­can companies

“Regu­la­tors said in gui­de­li­nes publis­hed last year that com­pa­nies could poten­ti­al­ly use Ame­ri­can tech com­pa­nies if they encrypt data and gua­ran­tee the ser­vice pro­vi­der can’t access it. But not all com­pa­nies can do that if they requi­re data ana­ly­tics or other ser­vices, said Ste­fan Hes­sel, seni­or asso­cia­te and co-head of digi­tal busi­ness at Reusch Rechts­an­walts­ge­sell­schaft mbH, a Ger­man law firm. To pro­cess data in any way, an Ame­ri­can busi­ness part­ner would need to access it in an unen­cryp­ted form, he said. Plus, com­pa­nies can’t encrypt meta­da­ta, which its­elf can inclu­de per­so­nal infor­ma­ti­on. Mr. Hes­sel said his cli­ents are opting for Euro­pean tech pro­vi­ders for new con­tracts, but have lar­ge­ly not moved away from Ame­ri­can com­pa­nies for exis­ting contracts.”

Ste­fan Hes­sel on Febru­a­ry 1 in The Wall Street Jour­nal magazin

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