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The ECJ has ruled that governments cannot force telecom firms to keep all customer data. The ruling, which says the laws violate basic privacy rights, comes as governments call for greater powers for spy agencies.

The Court of Justice of the European Union (ECJ) ruled on Wednesday that laws allowing for the blanket collection and retention of location and traffic data are in breach of EU law. In their decision, the justices wrote that storing such data, which includes text message senders and recipients and call histories, allows for "very precise conclusions to be drawn concerning the private lives of the persons whose data has been retained." "Such national legislation exceeds the limits of what is strictly necessary and cannot be considered to be justified within a democratic society," the Luxembourg-based court said. EU member states seeking to fight a "serious crime" are allowed to retain data in a targeted manner but must be subject to prior review by a court or independent body, the EU's top court said. Exceptions can be made in urgent cases. The decision came amidst growing calls from EU governments for security agencies to be given greater powers with the goal of preventing or investigating attacks. Privacy advocates, on the other hand, said mass data retention is ineffective in combating such crimes.

The court's decision was a response to challenges against data retention laws in Britain and Sweden on the ground that they were no longer valid after the court previously struck down an EU-wide data retention law in 2014. In Sweden, the law requires telecommunications companies to retain all their customers' traffic and location data, without exception, the ECJ said. British law allows authorities to ask firms to keep all communication data for a maximum 12-month period. In the UK, politicians filed a legal challenge against a surveillance law which passed in 2014, part of which was suspended by a British court. British lawmakers then passed the Investigatory Powers Act - the so-called "snooper's charter." A German data retention law, which came into effect at the end of 2015, requires telecommunications companies to store telephone and internet use for 10 weeks, after which point the data must be deleted. The German law also stipulates a shorter storage time of four weeks for location data which results from mobile phone calls. It remains to be seen what effect the ECJ ruling will have on Germany's blanket data retention measures.

The five-week court hearing in what is a complex case delving into detail on US surveillance operations took place in February. The court issued its ruling today. The 153-page ruling starts by noting “this is an unusual case”, before going into a detailed discussion of the arguments and concluding that the DPC’s concerns about the validity of SCCs should be referred to the European Court of Justice for a preliminary ruling. Schrems is also the man responsible for bringing, in 2013, a legal challenge that ultimately struck down Safe Harbor — the legal mechanism that had oiled the pipe for EU-US personal data flows for fifteen years before the ECJ ruled it to be invalid in October 2015. Schrems’ argument had centered on U.S. government mass surveillance programs, as disclosed via the Snowden leaks, being incompatible with fundamental European privacy rights. After the ECJ struck down Safe Harbor he then sought to apply the same arguments against Facebook’s use of SCCs — returning to Ireland to make the complaint as that’s where the company has its European HQ. It’s worth noting that the European Commission has since replaced Safe Harbor with a new (and it claims more robust) data transfer mechanism, called the EU-US Privacy Shield — which is now, as Safe Harbor was, used by thousands of businesses. Although that too is facing legal challenges as critics continue to argue there is a core problem of incompatibility between two distinct legal regimes where EU privacy rights collide with US mass surveillance.

Schrems’ Safe Harbor challenge also started in the Irish Court before being ultimately referred to the ECJ. So there’s more than a little legal deja vu here, especially given the latest development in the case. In its ruling on the SCC issue, the Irish Court noted that a US ombudsperson position created under Privacy Shield to handle EU citizens complaints about companies’ handling of their data is not enough to overcome what it described as “well founded concerns” raised by the DPC regarding the adequacy of the protections for EU citizens data.

Making a video statement outside court in Dublin today, Schrems said the Irish court had dismissed Facebook’s argument that the US government does not undertake any surveillance.

On Tuesday, the European court of justice, Europe’s supreme court, lobbed a grenade into the cosy, quasi-monopolistic world of the giant American internet companies. It did so by declaring invalid a decision made by the European commission in 2000 that US companies complying with its “safe harbour privacy principles” would be allowed to transfer personal data from the EU to the US. This judgment may not strike you as a big deal. You may also think that it has nothing to do with you. Wrong on both counts, but to see why, some background might be useful. The key thing to understand is that European and American views about the protection of personal data are radically different. We Europeans are very hot on it, whereas our American friends are – how shall I put it? – more relaxed.

Given that personal data constitutes the fuel on which internet companies such as Google and Facebook run, this meant that their exponential growth in the US market was greatly facilitated by that country’s tolerant data-protection laws. Once these companies embarked on global expansion, however, things got stickier. It was clear that the exploitation of personal data that is the core business of these outfits would be more difficult in Europe, especially given that their cloud-computing architectures involved constantly shuttling their users’ data between server farms in different parts of the world. Since Europe is a big market and millions of its citizens wished to use Facebook et al, the European commission obligingly came up with the “safe harbour” idea, which allowed companies complying with its seven principles to process the personal data of European citizens. The circle having been thus neatly squared, Facebook and friends continued merrily on their progress towards world domination. But then in the summer of 2013, Edward Snowden broke cover and revealed what really goes on in the mysterious world of cloud computing. At which point, an Austrian Facebook user, one Maximilian Schrems, realising that some or all of the data he had entrusted to Facebook was being transferred from its Irish subsidiary to servers in the United States, lodged a complaint with the Irish data protection commissioner. Schrems argued that, in the light of the Snowden revelations, the law and practice of the United States did not offer sufficient protection against surveillance of the data transferred to that country by the government.

The Irish data commissioner rejected the complaint on the grounds that the European commission’s safe harbour decision meant that the US ensured an adequate level of protection of Schrems’s personal data. Schrems disagreed, the case went to the Irish high court and thence to the European court of justice. On Tuesday, the court decided that the safe harbour agreement was invalid. At which point the balloon went up. “This is,” writes Professor Lorna Woods, an expert on these matters, “a judgment with very far-reaching implications, not just for governments but for companies the business model of which is based on data flows. It reiterates the significance of data protection as a human right and underlines that protection must be at a high level.”