Protecting privacy of personal data

The European Union (EU) data protection directive, which entered into effect on 25 October 1998, establishes a clear and stable regulatory framework to ensure both a high level of protection for the privacy of individuals in all Member States and the free movement of personal data within the European Union (EU) (see IP/98/925). By fostering consumer confidence and minimising differences between Member States' data protection rules, the directive facilitates the development of electronic commerce. The directive also establishes rules to ensure that personal data is only transferred to countries outside the EU when its continued protection is guaranteed, so as to ensure the high standards of protection introduced by the directive within the EU are not undermined.