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Europe’s highest court on Tuesday struck down an international agreement that allowed companies to move digital information like people’s web search histories and social media updates between the European Union and the United States. The decision left the international operations of companies like Google and Facebook in a sort of legal limbo even as their services continued working as usual.The ruling, by the European Court of Justice, said the so-called safe harbor agreement was flawed because it allowed American government authorities to gain routine access to Europeans’ online information. The court said leaks from Edward J. Snowden, the former contractor for the National Security Agency, made it clear that American intelligence agencies had almost unfettered access to the data, infringing on Europeans’ rights to privacy. The court said data protection regulators in each of the European Union’s 28 countries should have oversight over how companies collect and use online information of their countries’ citizens. European countries have widely varying stances towards privacy.

Data protection advocates hailed the ruling. Industry executives and trade groups, though, said the decision left a huge amount of uncertainty for big companies, many of which rely on the easy flow of data for lucrative businesses like online advertising. They called on the European Commission to complete a new safe harbor agreement with the United States, a deal that has been negotiated for more than two years and could limit the fallout from the court’s decision.

Some European officials and many of the big technology companies, including Facebook and Microsoft, tried to play down the impact of the ruling. The companies kept their services running, saying that other agreements with the European Union should provide an adequate legal foundation.But those other agreements are now expected to be examined and questioned by some of Europe’s national privacy watchdogs. The potential inquiries could make it hard for companies to transfer Europeans’ information overseas under the current data arrangements. And the ruling appeared to leave smaller companies with fewer legal resources vulnerable to potential privacy violations.

The European Commission, on January 24, published its guidance aimed to facilitate a direct and smooth application of the European Union’s new data protection rules across the EU as of 25 May. The Commission also launches a new online tool dedicated to SMEs.

With just over 100 days left before the application of the new law, the guidance outlines what the European Commission, national data protection authorities and national administrations, according to the Commission, should still do to bring the preparation to a successful completion. The Commission notes that while the new regulation provides for a single set of rules directly applicable in all Member States, it will still require significant adjustments in certain aspects, like amending existing laws by EU governments or setting up the European Data Protection Board by data protection authorities. The Commission states that the guidance recalls the main innovations, opportunities opened up by the new rules, takes stock of the preparatory work already undertaken and outlines the work still ahead of the European Commission, national data protection authorities and national administrations. Andrus Ansip, European Commission Vice-President for the Digital Single Market, said: “Our digital future can only be built on trust. Everyone’s privacy has to be protected. Strengthened EU data protection rules will become a reality on 25 May. It is a major step forward and we are committed to making it a success for everyone.” Vĕra Jourová, Commissioner for Justice, Consumers and Gender Equality, added:” In today’s world, the way we handle data will determine to a large extent our economic future and personal safety. We need modern rules to respond to new risks, so we call on EU governments, authorities and businesses to use the remaining time efficiently and fulfil their roles in the preparations for the big day.”

The guidance recalls the main elements of the new data protection rules: One set of rules across the continent, guaranteeing legal certainty for businesses and the same data protection level across the EU for citizens. Same rules apply to all companies offering services in the EU, even if these companies are based outside the EU. Stronger and new rights for citizens: the right to information, access and the right to be forgotten are strengthened. A new right to data portability allows citizens to move their data from one company to the other. This will give companies new business opportunities. Stronger protection against data breaches: a company experiencing a data breach, which put individuals at risk, has to notify the data protection authority within 72 hours. Rules with teeth and deterrent fines: all data protection authorities will have the power to impose fines for up to EUR 20 million or, in the case of a company, 4% of the worldwide annual turnover.