Business Services Industry

Europe's Tough Data Protection Rules Spill over to U.S.

Knight Ridder/Tribune Business News, August, 2002

By Kristi Heim, San Jose Mercury News, Calif. Knight Ridder/Tribune Business News

Aug. 30--As backers of privacy protection bills fight an uphill battle in the California Legislature, Europe's strict approach to data protection is forcing many U.S.-based tech companies to raise the bar.

A case in point is the Federal Trade Commission's recent privacy investigation of Microsoft's Passport, an online ID service that lets people enter one name and password for almost anything they do over the Internet.

Consumer and privacy groups had accused Microsoft of not taking adequate steps to protect consumers' personal information. In a settlement earlier this month, Microsoft admitted no wrongdoing but agreed to government oversight of its...

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