American companies such as Facebook and Google are under EU laws when operating in the EU. Handing over all this private information about EU citizens is illega

American companies such as Facebook and Google are under EU laws when operating in the EU. Handing over all this private information about EU citizens is illegal according to EU laws. So PRISM will cause problems for American companies because they will not be able to operate outside the US without getting fined. That is the economic side of things. Then there is the other aspect that it is going to ruin relationship with allied countries. We have had to put up with a lot of shit from the US, and this feels like the final straw.