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November 24 2015

Safe Harbor Decision Trickles Down: ILITA Revokes Prior Authorization

"In a new development demonstrating the ripple effect of the European Court of Justice (ECJ) Schrems decision, the Israeli Law, Information and Technology Authority (ILITA) revoked its prior authorization to transfer data from Israel to the U.S. that rely on Safe Harbor. The announcement will present a significant barrier to data flows from Israel 's surging technology sector, which comprises large local operations of global powerhouses such as Intel, Microsoft, Google, Facebook and HP, as well as Israeli ""unicorns"" such as Waze, which was acquired by Google for more than $1 billion. The decision attempted to avoid rupturing the borders of the Euro ""data zone,"" which Israel effectively belongs to under its adequacy decision. At the same time, the adequacy of Israel 's regime itself may be called into question, together with other adequacy mechanisms, based on the reasoning of the ECN."