German companies threatened trouble in the use of US-Clouds

German companies threatened trouble in the use of US-Clouds

German companies that use U.S. providers of Clouds threaten serious consequences to fines. After Microsoft conceded in June, data should be released also to the FBI and other U.S. authorities, doubts arose as to whether German companies can hire any U.S. provider. The German data protection officer of the federal and state governments have yesterday in their Friday 82nd Next to the conference call for restraint use Facebook a "guidance" on important issues of cloud computing adoption, also to contracts with cloud providers from the USA.

The opinion makes it true that German companies use Clouds by U.S. providers, but the demands are high. One possibility is that companies and providers in the cloud contract expressly provide to process personal data only in data centers within the European Economic Area, that is, within the EU plus Iceland, Liechtenstein and Norway. In addition, the cloud provider must submit the mandatory application of EU law.

Next to it the opinion for the possibility that the contract allows for a data processing in data centers in the United States. For such transmission of several requirements are met. The cloud provider from the United States must have committed against the U.S. Department of Commerce to the Safe Harbor Principles. In addition, he must cooperate with European data protection authorities. The German company and the US-cloud providers must also conclude an agreement on the principles of data processing in accordance with German data protection law, which contains a number of guarantees.

These requirements also apply to existing contracts. Precisely here lies the urgency, because most contracts with U.S. providers do not meet the requirements. Previously you could rely on a degree of legal uncertainty and hope that nothing happens. After the data protection officer but a single opinion from, this possibility no longer exists. Now threaten serious consequences for German companies. Therefore, companies need to examine critically and renegotiate their existing contracts. This is the published opinion, a help, because they are also the suppliers of the U.S. legal certainty for their contracts with German corporate clients.