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Committees: Wait! Don't strap on the Privacy Shield yet

Anonymous Coward
Anonymous Coward

Euros are infamous for creating regulations without paying any attention to the consequences. Remember when the EU created "butter boats" - that is, they subsidized the production of butter so heavily, that it had to be kept on boats in international waters? I know, ridiculous, right?

Now we have this debacle. The EU negotiators have negotiated a deal that likely its own courts won't uphold. But it is likely the best deal that the EU can negotiate with the US - indeed, the US negotiators have already given a lot of concessions. If the EU thinks that they can get further concessions from the US - such as removing the intelligence and law enforcement clauses - then think again. The US regulators will never allow that - nor would Congress ever pass enabling legislation for that. No way.

So, where does that leave us? If this fails, is there no room for a third try at this? And does the whole data transfer regime collapse? More importantly, is that what the EU leaders really want?

It wouldn't surprise me if the end game game that the EU leaders envision is this: Privacy Shield is declared illegal by the courts, and can't be replaced. However, most multinationals still require a way to move data to cloud. So, they begin moving data not to US data centers, but to EU data centers. As a result, the EU share of the data center market skyrockets. (We have already seen example of this so far, with companies such as Amazon and Facebook opening up data centers in EU, so they can take advantage of coming wave of migration to locations there.)

I am a highly cynical person - and I see cynicism in others. I highly suspect that this is how the cloud marketplace evolves over the next few years. And US leaders are gullible enough to let it happen. Most US leaders could not negotiate their way out of a $10 traffic ticket.

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