EU Data Protection Directive: A Thorn in the Side of the US Domestic Online Retailer

Nadja van der Veer, Deputy General Counsel Global Collect Services B.V., Global Collect Services BV, Netherlands

Companies outside the European Union are sometimes confronted with having to comply with European legislation around data protection. This is especially the case in the event they make use of a Europe-based service provider. This does not only raise concern for said companies, it also potentially damages the business of European service providers in acquiring new businesses outside the EU. This paper discusses the particular issues arising out of a US based retailer making use of a European payment service provider in particular for the execution of its online payments. The European data protection directive did not anticipate on the effects of its broad interpretation of ‘making use of equipment situated in the European Union’, which leads to applicability of the law. The principles behind the directive are challenged and a solution is proposed to prevent situations where a non-European based retailer processing payments from non-European consumers via a European PSP has to comply with European data protection requirements.

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Netherlands Data Protection Banking & Finance April 2013 Vol. 6, No. 23, Spring 2013

Nadja van der Veer

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Nadja van der Veer is Deputy General Counsel at GlobalCollect. She has been working for the company for almost six years, right after having obtained her law degree at the University of Amsterdam and having studied a semester at the American University of Cairo. She has grown together with the company and now fulfills the role of deputy and acts as sounding board of the General Counsel and the Board. Next to day-to-day operational activities, her focus in this role goes out to reviewing of and advising on (inter)national legislation to a worldwide service provider like GlobalCollect and drafting business policies to allow the company to take decisions in line with applicable laws, such as AML, Sanctions and Anti-Bribery. Next to that, Nadja is closely involved in (i) several business expansion initiatives to advise upon regulatory and other legal impacts and (ii) process reviews to advise upon, determine and implement improvements into the legal department and throughout the company.

Global Collect Services BV

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GlobalCollect is the world's premier Payment Service Provider of local e-payment solutions for international Customer Not-Present (CNP) channels such as internet, mail and telephone orders, and specializes in a wide range of industries such as travel, ticketing, telecommunications, retail, publishing, portals, online gaming, and digital content. While most providers limit their services to a technical link with payment acquirers, GlobalCollect is a full service partner consulting clients on how to increase transaction volumes, expand distribution channels, and reduce costs by streamlining back office processes. Through a single-interface online payment platform, we offer access to an unrivalled portfolio of local and international payment methods in over 170 countries and 170 currencies, including all major credit and debit cards, direct debits, bank transfers, real-time bank transfers, eWallets, cash at outlets, prepaid methods, checks, and invoices. For more information please visit: www.globalcollect.com.

Netherlands Data Protection Banking & Finance April 2013 Vol. 6, No. 23, Spring 2013
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