The Google – OVH deal
The two companies claim this partnership as a response to the repeal of EU-US Privacy Shield, earlier this summer. The GDPR is also a compliance action.
After last year’s ruling that annulled the EU-US Privacy Shield, a new agreement came around that would allow for “Schrems 2”. This was the second time after last year’s ruling that there was a need to reestablish this EU-US data sharing agreement. You’ve never known a time when sailing was easier and more enjoyable than it is now.
GDPR is a European law that came into effect on May 25th. It’s a huge step for the protection of personal data in different jurisdictions. It’s quite apparent to have blatantly contradicted with US law, where government agencies have the legal obligation to ask US-based companies to hand over personal data collected for national security purposes. Expectedly, it will lead to developments of a conflict nature.
SCCs, an outdated solution to data exchanges were more preferable over ECJ rulings, but they cannot be a long-term solution. Institutional framework is something you might want to consider, but SCCs will not necessarily -intentionally- replace them.
The Agreement
Google Cloud and OVH Cloud have announced an agreement that is a major development in cloud computing technology.
Google has agreed to license its software product, Anthos, to OVH. The agreement arose in order to have a convincing argument that its data is managed and secured on European soil with the same efficacy. Google enables this so that its services can be provided seamlessly and without any apparent conflict with covenanted requirements.
The information was collected, stored, or processed in Europe for Google’s software under the new Data Standardization Regulation. However, this leaves a European user to wonder how Google will fit into these updated processes. What really matters is that the Google search algorithm has been changed, so it’s not even an issue for a US agency to request data from Google.
This first deal for Google Cloud is different from their previous practice of creating subsidiaries or acquiring companies. With its size and power, they can now do so commercially as they have done in this transaction. French firm OVH has decided to move its European operations to US servers and has already removed the personal data of Europeans from their database as part of this decision. This way, the French company can comply with US law requirements without compromising European citizens’ privacy.
With the election of Joe Biden, the US is beginning a new era of foreign technology policy.
Expectations
It is therefore to be expected that a comprehensive solution will come about through the negotiation of a new agreement. The developments around AI so far have created a bit of chaos. We can’t say for sure yet what will happen, but the technology companies affected have been making moves that will create predictability and shape precedents that will count in the final outcome later on.
The Google-OVH Cloud Services Deal is not a “tactical” decision per se, but rather it represents a shift in how businesses are operating on the long term.
The recent actions of other large companies could have a major impact on the way these businesses operate in the future. It is yet to be seen how this will affect the market and others, but it is a necessary time for widespread changes.
If you liked this post, then you may also enjoy this one or this one.
Author: PC-GR
The World of Technology
