There is no reason to believe that the British government, for example, would try to cut off all data flows to the United States. The more likely prospect is specific legal action taken against a U.S. company that violates basic European practices, such as collecting data via a website and selling it to a direct marketing company. The direct impact of the Privacy Directive will probably be felt first by companies which already use the Internet as a basic part of their business model. Firms which collect data over their websites to be used for marketing will find it particularly difficult to comply with the Privacy Directive. Any new use or transfer of the data collected would require the express approval of the data subject, and Europeans are especially sceptical about the U.S. practice of selling private information for marketing purposes. . . .
Companies try to develop detailed information about their customers.
Transferring data from banks, credit card companies and travel agents in Europe back to company facilities in the U.S. would violate the Directive unless each customer gave their express consent to the transfer. Not all of the consequences of the Privacy Directive are likely to be negative, however. Many believe that an increased emphasis on privacy will enhance the viability of commerce on the Internet. U.S. Commerce Secretary William Daley pointed out that 86 percent of Americans are concerned about Internet privacy. Enhancing privacy may be able to increase the volume of e-commerce.