In order for a court to control a case and decide its outcome, that court must have jurisdiction. In a bold move in response to the scandal regarding Google’s providing personal information of individuals to governments in the U.S. and EU, the EU recently asserted that Google’s servers outside the EU that hold data about EU citizens are subject to EU law, enforceable by EU Courts.
United States Internet businesses have spent much time and energy avoiding regulation by other countries — and in particular, the European Union. One way companies protect themselves is to include a provision in their Terms of Service making the U.S. the jurisdiction and controlling law for use of their sites, as well as for Click Agreements.
However, some recent disputes in the EU have changed the playing field regarding jurisdiction, and these cases may impact the use of a website there.