Europe plans to join US in 'safe harbour'

The European Union (EU) and the US have moved a step closer to resolving the data privacy debate that has raged for almost two years.

David Aaron, US undersecretary for ecommerce, and John Mogg, the EU's director general, last week announced an agreement on ways to enforce a US self-regulatory system that would enable the transfer of EU personal data to US firms.

"We have an extensive legislative framework for privacy in the US," said Aaron. "We want that to be part of the safe harbour. I think that the European Union also wants that to be the case. Trying to capture that and integrate it is part of the challenge that we still face."

A 'safe harbour' is where companies agree to a level of self-regulation over the information that enters that particular domain.

However, EU member states may still block any prospects of a more permanent solution. "It's tough persuading Europe to agree, but trying to get the US in as well will be even tougher," said Dan Roberts, consultant at analyst Cambashi.

Both sides stressed that there are several steps which must be taken before a final agreement can be reached. The EU must consult with member states and the European Parliament, and several meetings of the relevant committees have been convened for this month. Likewise, in the US, any deal must be presented to the National Economic Council, and undergo public consultation.

Jack Mark, founder of Unipower, a UK ecommerce solution provider for retail businesses, noted that different regulations between each EU country will make things difficult for companies whose business runs worldwide.

"I don't know if I would trust the US to keep my data safe if I was an EU country," he said.

Member states may render data covering national security, defence, crime detection and enforcement of criminal law exempt from the Directive's obligations.