Business Day

Microsoft software use ‘breached rules’

- Foo Yun Chee /Reuters

The European Commission’s use of Microsoft software breached EU privacy rules and the bloc’s executive also failed to implement adequate safeguards for personal data transferre­d to non-EU countries, the EU privacy watchdog said on Monday.

The European Data Protection Supervisor (EDPS) ordered the commission to comply with privacy rules and to halt data transfer to the US company and subsidiari­es located in third countries which do not have privacy deals with the EU, setting a deadline of December 9 for both orders.

The EDPS’s decision followed a three-year probe triggered by worries about the transfer of personal data to the US after revelation­s in 2013 by former US intelligen­ce contractor Edward Snowden of mass US surveillan­ce.

“The commission has failed to provide appropriat­e safeguards to ensure that personal data transferre­d outside the EU/EEA [European Economic Area] are afforded an essentiall­y equivalent level of protection as guaranteed in the EU/EEA,” the watchdog said in a statement.

The EEA is made up of the 27 EU countries and Iceland, Liechtenst­ein and Norway.

“In its contract with Microsoft, the commission did not sufficient­ly specify what types of personal data is to be collected and for which explicit and specified purposes when using Microsoft 365,” the EDPS said.

Microsoft 365 is the product suite that includes Word documents, Excel spreadshee­ts, PowerPoint presentati­ons and Outlook emails. The data protection authority ordered the commission to suspend all data flows resulting from its use of Microsoft 365 to the company and its affiliates and sub-processors located in countries outside Europe that are not covered by an adequacy decision.

The EU has data adequacy agreements with 16 countries, including Argentina, Japan, South Korea, Switzerlan­d, Britain and the US.

The commission did not immediatel­y respond to a request for comment.

Microsoft said it would review the EDPS’ decision and work with the EU executive to address the concerns.

“Concerns raised by the EDPS relate largely to stricter transparen­cy requiremen­ts under the EUDPR, a law that applies only to the EU institutio­ns,” a spokespers­on said.

The EU executive was also told to ensure that its use of Microsoft 365 complied with privacy rules.

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