Facebook may be forced to stop sending data about its European users to the United States due to the first serious consequences of a recent court ruling that certain transatlantic data transfers do not protect users from surveillance by the US government, AP reported.

The social network reported that the Irish Data Protection Commission has launched an investigation into how Facebook transfers data from the European Union to the United States.

As a result, the US tech giant, which has data centers around the world, may be forced to undertake a costly and complex facelift to ensure that European user data does not end up in the US.

The lack of secure, reliable, and legal international data transfers will hurt the economy and make it difficult for data-driven businesses to grow in the EU, just like COVID-19, said Nick Clegg, Facebook VP of Global Affairs and Communications.

According to the commission, the legal mechanism governing the transfer of data, known as standard contractual clauses, cannot in practice be used to transfer data between the EU and the US.

The commission is the leading privacy regulator for Facebook in Europe and can fine the company up to 4% of its annual revenue for data breaches.