Facebook has lost a High Court case it took to stop Ireland’s Data Protection Commissioner from proceeding with an order that would prohibit the social media giant from data transfers between EU users and the US.

The move opens the way for an internationally contentious disruption to transatlantic data flows and trade.

The High Court decision has major implications for Facebook and other tech companies who transfer data to the US.

The Irish regulator’s order is the result of a European Court decision in July of last year, which struck down the transatlantic ‘Privacy Shield’ treaty.

It means the validity of ‘standard contractual clauses’ (SCCs) used by thousands of Irish and European companies to transfer data, is now closer to being cancelled.

Facebook reacted by claiming that a cancellation of SCCs could cause near-term chaos for the global economy.

In reaction to today’s High Court decision, a Facebook spokesperson said: “Today's ruling was about the process the IDPC followed. The larger issue of how data can move around the world remains of significant importance to thousands of European and American businesses that connect customers, friends, family and employees across the Atlantic.

”Like other companies, we have followed European rules and rely on standard contractual clauses, and appropriate data safeguards, to provide a global service and connect people, businesses and charities. We look forward to defending our compliance to the IDPC, as their preliminary decision could be damaging not only to Facebook, but also to users and other businesses.”

Former deputy prime minister of the UK Nick Clegg, who is now Facebook’s vice-president of global affairs and communications, has previously said that the impact would be felt by businesses large and small, across multiple sectors.