Brussels, May 30 (DPA) The European Union's highest court ruled Tuesday that a passenger data agreement between the EU and the US was illegal.
The European Court of Justice said the bilateral agreement lacked an 'appropriate legal basis' as it was based on EU law, which does not cover passenger data collected under the agreement.
Under the controversial agreement, European air carriers have been obliged to give US authorities 34 pieces of information about each passenger flying to the US.
Washington had argued the information is vital to fight terrorism following the September 2001 terrorist attacks and had warned that airlines will face fines and lose landing rights if they do not comply.
Data collected under the deal are called passenger name records, or PNRs. They include information such as credit card numbers, travel itineraries, addresses, telephone numbers and meal requests. The latter can indicate a passenger's religion or ethnicity.
The European Commission, the EU's executive body, and EU governments signed the deal with the US in May 2004.
The move triggered an outcry by data protection experts. The European Parliament took the issue to the European Court of Justice, arguing that the deal endangers the European citizen's fundamental rights and freedoms.
European and US officials said the passenger data would only be used to fight terrorism and other serious crimes.
Since March 2003, the EU and the US have been exchanging data under an informal arrangement. But airlines had argued for a permanent legal settlement.
The EU struck a similar deal with Canada last year that transfers passenger names to Canada Border Services Agency, which has promised to treat the information in line with EU data protection.
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