The Advocate-General of the European Court of Human Rights has said the mass transfer of European Union user data to the US by companies is a breach of the fundamental right to privacy.
A new report from the Court recommends that the Safe Harbour Agreement be considered invalid.
The Irish Data Protection Commissioner had argued it is bound by Safe Harbor - a deal that allows companies transfer data from the EU to the US.
Today's recommendation has been called a significant step for digital human rights.
The case was brought about by Austrian law student Max Schrem, who argued Facebook Ireland was in breach of EU data protection law - by transferring user data to the US.
Mr Schrem explains the claim he put forward to the Irish Data Protection Commission - and he says the situation is clear: European users have no say over where their data goes in the US.
The ruling is not binding - however, in four out of five cases the European Court follows the recommendation of the Advocate-General
The Data Protection Commissioner says it will await the final ruling from the Court of Justice.
US firms have been sending data back to the US under the Safe Guard Agreement. Today's recommendation would see this dismantled.
TJ Mc Intyre, law lecturer and chairperson of Digital Rights Ireland, told Newstalk Lunchtime that long term this would be good news for citizens of the digital world.