The so-called Safe Harbor agreement that allows U.S. web firms to take on customers in the European Union is in deep trouble. EU Justice Commissioner Viviane Reding has launched a review of the deal, and on Wednesday it emerged that data protection watchdogs from around Germany have urged Chancellor Angela Merkel to push for its suspension, due to NSA surveillance fears.
Basicly US web firms can only operate in Europe if they agree to obey EU privacy standards - including not handing the data of their EU customers to outside parties like, say, the NSA. They're breaking this agreement. And now they're going to pay the consequences, with either tighter policing or a wholesale denial of access to the European market.
But this isn't just about the US - John Key's spy bill would let the GCSB do exactly what the NSA is doing, right here in New Zealand. If it passes, our web companies could face the same punishment. Key is endangering the future of our economy if he pushes on with this. Sadly, he seems too blinded by the spooks' secret bullshit to care.