The European Commission announced on 29th July that it had decided to send reasoned opinions to France, Luxembourg, the Netherlands, Germany, the United Kingdom, Ireland, Denmark, Spain and Austria for failure to notify all the measures necessary to implement the 1995 Data Protection Directive (the "Directive").

The reasoned opinions represent the second stage of formal infringement proceedings under the EC Treaty. The Member States concerned must respond to the Commission within two months, after which time, the Commission may take the matter to the European Court of Justice.

The Data Protection Directive, which should have been implemented by the Member States concerned by 25th October 1998, establishes a clear 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. The EU has long regarded the Directive as being a cornerstone of its drive to promote 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 that the high standards of protection introduced by the Directive within the EU are not undermined.

In parallel with the decision of the EU Commission, EU-US dialogue aimed at agreeing a set of "safe harbour" principles for the transfer of personal data to the US is ongoing.

In its announcing its decision, the Commission emphasised that individuals who suffer damage or loss as a result of the failure of their Member State to implement the Directive, may (in certain circumstances) have the right to claim compensation from that Member State. This right of action may be taken in the national courts.

The action proposed by the EU Commission represents a determination on its part to harmonise the data protection laws in the EU . No Irish implementing legislation has yet been published, although it is expected in the Autumn.

For more information please contact

David Sanfey - DSanfey@algoodbody.ie

Carol Plunkett - CPlunkett@algoodbody.ie

Paul Carroll - PCarroll@algoodbody.ie

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