Pulled from the wires.
From IT World:
Safe Harbor is not new to friction between the US and the EU’s data protection policies: the policy itself is a compromise to bridge the gap between the EU’s 1998 European Commission Directive on Data Protection (ECDDP), which blocked data from being transferred to outside the European Economic Area unless the EU’s strict protection guidelines were followed.
The problem was that US policies handled data like names and addresses in ways that were way outside the ECDDP, which would have effectively stopped any European data from being stored on US systems, were it not for Safe Harbor.
Source:Â Article Link
(Image used under CC from ingirogiro)