Maintaining the Flow of Global E-Commerce Data (Case 2) Case Study

Maintaining the Flow of Global E-Commerce Data ( 2) - Case Study Example On the contrary, philosophy in the United States identifies a level of freedom. There is no government regulation on data privacy and the regulation responsibility relies on individual organization. Even though government agencies act as watchdogs for self-regulation, there is no formal framework for punishing non-compliance. The main difference, therefore, is that while the European Union has a regulated environment for data flow, the United States lacks such a regulated environment. E-commerce relies on technology such as the internet for transmission of data from parties to a commercial communication or transaction. The European Union regulations for data privacy restricts transfer of data to regions that lack a formal regulatory framework on data privacy buy the safe harbor eliminates this rule on the United States. The exemption applies to organizations that meets the Union’s requirements for data safety and allows free transfer of data. The implication of the safe harbor and data privacy is therefore a facilitated E-business because of free transfer of data from the European Union to the United States. Absence of free harbor would prohibit such data transfer and stop E-commerce between the United States and the EU and between organizations in the United States and their subsidiaries in the EU (Morgan and Boardman 217). Conventions such as the establishment of the directive by EU to establish standards for data privacy are legal regulations and binds member states. If the EU and the United States could not agree on the standards then the EU regulations would prohibit data flow to the United States. This would stop E-commerce between the United States and members of the EU because parties in the United States would not receive data from entities from the European Union. The communication barrier would paralyze E-commerce between people from the two regions. This would further have adverse effects on the two economies.