A stricter law sometimes paved way for hindrance for multinational companies that operated in European Union countries but in the broader sense all member nations could exchange private information in the private and public segment (Data Protection and Privacy. n.d).
The European Union authorities have signed a pact with United States that enables officials in the United States to have a wide access to private information like credit card transactions, travel histories and internet surfing nature of people in Britain. The United States law enforcement organisations and security agencies will have the liberty to access private information of European Union citizens. The pact will undermine the privacy of individuals and American will have the freedom to check on anyone it finds fit for scrutiny. The propaganda has evoked mixed results among authorities within the European Union and some comment that local official are not to be trusted while handling sensitive private information and the revelation of this data to another nation may result in virtual abuse. The pact is of advantage to the United States because it can intrude into the details of any person in the European Union and Britain through credit card companies, banks and other establishments that collect person details. Earlier, the European Union imposed sanction if any firm gave information against the information protection law. The pact will now give better protection for firm on transfer of private information. The pact is set to allow European governments and firms to exchange private details of internet and credit card users and make it legally binding on both the United States and European Union. However, required law has not been drafted whereby European Union citizens can hold the American government liable for misuse of information. The pact calls for exchange of information about airlines and international bank transfers. Though this is not a total transfer of information between European Union nations and the United States, the pact provides extensive access of private information which is considered to be protected according to the European Union law (Leppard, 2008).
The decision has come up after difference of opinion evolved between Europe and United States in terms of sharing private information post the 9/11 attacks. The United States demanded information about air passenger and bank transfer details which most of the European Union nations denied stating privacy laws. The common agreement is finalized to evade future problems in terms of information sharing. But from the corporate point of view, more companies will be in a dilemma to find a balance between European and American law (U.S., EU near deal on private data: NYTimes. 2008).