The extraterritoriality of EU data privacy law: Its theoretical justification and its practical effect on U.S. businesses

Research output: Contribution to journalArticleResearchpeer-review

11 Citations (Scopus)

Abstract

Due to its extraterritorial effect, the European Union's trailblazing data privacy law has long been a major concern for US. businesses. With the proposal for a new EU data privacy framework with potential penalties of up to two percent of an offending enterprise's annual worldwide turnover, and with the European Union at the same time expanding the extraterritorial reach of its data privacy law, such concerns are justified indeed.

This Article examines the extraterritoriality of current and proposed EU data privacy law and analyses whether reference to international law can either strengthen or weaken those claims of extraterritoriality. In doing so, this Article demonstrates that international law lends support to the approach to extraterritoriality adopted in the EU data privacy law. At the same time, however, the examination of EU law highlights that, from the perspective of extraterritoriality, the current EU Directive is dysfunctional in its unnecessary complexity, and the proposed EU Regulation is in desperate need of refinement.

Finally, the Article presents a doctrine of "market sovereignly," established by reference to the effective reach of "market destroying measures," as a mechanism for determining the extraterritorial reach of jurisdictional claims.

Original languageEnglish
Pages (from-to)53-102
Number of pages50
JournalStanford Journal of International Law
Volume50
Issue number1
Publication statusPublished - 2014

Fingerprint

privacy law
EU
international law
European Law
market
turnover
privacy
doctrine
penalty
regulation
examination

Cite this

@article{41cc6ce6ea404601a52ea720ece91cc5,
title = "The extraterritoriality of EU data privacy law: Its theoretical justification and its practical effect on U.S. businesses",
abstract = "Due to its extraterritorial effect, the European Union's trailblazing data privacy law has long been a major concern for US. businesses. With the proposal for a new EU data privacy framework with potential penalties of up to two percent of an offending enterprise's annual worldwide turnover, and with the European Union at the same time expanding the extraterritorial reach of its data privacy law, such concerns are justified indeed.This Article examines the extraterritoriality of current and proposed EU data privacy law and analyses whether reference to international law can either strengthen or weaken those claims of extraterritoriality. In doing so, this Article demonstrates that international law lends support to the approach to extraterritoriality adopted in the EU data privacy law. At the same time, however, the examination of EU law highlights that, from the perspective of extraterritoriality, the current EU Directive is dysfunctional in its unnecessary complexity, and the proposed EU Regulation is in desperate need of refinement.Finally, the Article presents a doctrine of {"}market sovereignly,{"} established by reference to the effective reach of {"}market destroying measures,{"} as a mechanism for determining the extraterritorial reach of jurisdictional claims.",
author = "Svantesson, {Dan Jerker B}",
year = "2014",
language = "English",
volume = "50",
pages = "53--102",
journal = "Stanford Journal of International Law",
issn = "0731-5082",
publisher = "STANFORD UNIV, STANFORD LAW SCHOOL",
number = "1",

}

The extraterritoriality of EU data privacy law : Its theoretical justification and its practical effect on U.S. businesses. / Svantesson, Dan Jerker B.

In: Stanford Journal of International Law, Vol. 50, No. 1, 2014, p. 53-102.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - The extraterritoriality of EU data privacy law

T2 - Its theoretical justification and its practical effect on U.S. businesses

AU - Svantesson, Dan Jerker B

PY - 2014

Y1 - 2014

N2 - Due to its extraterritorial effect, the European Union's trailblazing data privacy law has long been a major concern for US. businesses. With the proposal for a new EU data privacy framework with potential penalties of up to two percent of an offending enterprise's annual worldwide turnover, and with the European Union at the same time expanding the extraterritorial reach of its data privacy law, such concerns are justified indeed.This Article examines the extraterritoriality of current and proposed EU data privacy law and analyses whether reference to international law can either strengthen or weaken those claims of extraterritoriality. In doing so, this Article demonstrates that international law lends support to the approach to extraterritoriality adopted in the EU data privacy law. At the same time, however, the examination of EU law highlights that, from the perspective of extraterritoriality, the current EU Directive is dysfunctional in its unnecessary complexity, and the proposed EU Regulation is in desperate need of refinement.Finally, the Article presents a doctrine of "market sovereignly," established by reference to the effective reach of "market destroying measures," as a mechanism for determining the extraterritorial reach of jurisdictional claims.

AB - Due to its extraterritorial effect, the European Union's trailblazing data privacy law has long been a major concern for US. businesses. With the proposal for a new EU data privacy framework with potential penalties of up to two percent of an offending enterprise's annual worldwide turnover, and with the European Union at the same time expanding the extraterritorial reach of its data privacy law, such concerns are justified indeed.This Article examines the extraterritoriality of current and proposed EU data privacy law and analyses whether reference to international law can either strengthen or weaken those claims of extraterritoriality. In doing so, this Article demonstrates that international law lends support to the approach to extraterritoriality adopted in the EU data privacy law. At the same time, however, the examination of EU law highlights that, from the perspective of extraterritoriality, the current EU Directive is dysfunctional in its unnecessary complexity, and the proposed EU Regulation is in desperate need of refinement.Finally, the Article presents a doctrine of "market sovereignly," established by reference to the effective reach of "market destroying measures," as a mechanism for determining the extraterritorial reach of jurisdictional claims.

UR - http://www.scopus.com/inward/record.url?scp=84899653508&partnerID=8YFLogxK

M3 - Article

VL - 50

SP - 53

EP - 102

JO - Stanford Journal of International Law

JF - Stanford Journal of International Law

SN - 0731-5082

IS - 1

ER -