Human Resource Selection 9th Edition by Marianne Jennings

Exercise 21

The European Union has developed a directive on privacy and e-mail. Nations within the EU are permitted to use e-mail for commercial transactions and can exchange information via e-mail. However, businesses from countries outside the EU will not be permitted access to EU business information and EDI systems for contracting purposes unless they can guarantee adequate privacy protections are in place for the data transmitted via e-mail. Most legal experts believe the EU privacy directive applies to all forms of transmissions in business, including commercial contracts and ordering information.
What would happen if a business tapped into an EU business and began entering into transactions without an adequate privacy guarantee? Would there be criminal sanctions? Trade sanctions? How does this directive affect international trade with the EU? The EU has provided that trading privileges can be withdrawn from countries with businesses that violate the privacy standards on e-mail information and data transmission. What happens when trading privileges are withdrawn? Is the EU directive a commercial control of trade?