European Court of Justice Hears Online Privacy Case

The European Court of Justice -- the European Union’s top court -- heard arguments  in the biggest threat yet to a legal mechanism that allows Facebook Inc. and thousands of other firms to transfer European personal data to U.S.-based servers. Following revelations of widespread surveillance by the U.S. National Security Agency, plaintiff Max Schrems, an Austrian law student, made the case that the EU-U.S. agreement, called Safe Harbor, no longer guarantees the privacy of European residents.