Trouble is, the talks are going nowhere fast. Negotiators from both sides of the Atlantic had hoped to agree on a set of voluntary privacy guidelines in time for a Dec. 15 U.S.-E.U. summit in Washington. This is anathema to U.S. companies. Rather than adhere to the directive, the U.S. is trying to negotiate a set of voluntary guidelines that would let Americans collect information on cybershoppers, promising just enough protections to satisfy the Europeans. Literally interpreted, says Peter Swire, the White House's coordinator of privacy policies, the EU directive would bar a American business exec from flying from Paris to New York with the names and phone numbers of European clients in his laptop.
European officials say such fears are overwrought.
U.S. officials hope against hope that they can resolve the conflict before the EU summit ends later this week in Washington. But if the Administration makes concessions, U.S. multinationals could find themselves in the ticklish position of explaining why they have bestowed privacy privileges on European consumers that they are trying to withhold from Americans. Just last spring, Microsoft was forced to reveal that it had been collecting data on users who had expressly requested anonymity. And Internet streaming media powerhouse Real Networks was forced into an embarrassing purge of features in its RealJukebox product that allowed the company to track its customers' tastes in music. Some privacy advocates believe technology, not governments, will eventually solve many of these problems.