I can easily see this working like this: I move 10 people to a member state and make it the "Headquarters" of my company for COMPLIANCE purposes in the least restrive country - while the physical headquarters is in another. And all the support staff for the HQ is wherever it is cheapest to have them. Companies already do this for tax purposes (shell companies).
It also would imply that you can violate any other countries privacy laws without worry as long as they comply with the HQ location laws - and cannot EVER be taken to court.
Course to get around this the EU can just state that the EU laws trump any country laws and just have the EU make the rules in Brussels and be done with it. Basically stating that all countries now more like US states except that the EU (Federal) law trumps any states law and once the EU makes a law all nation laws covering the same are void and cannot be more or less than what the EU states.
The best of ZDNet, delivered
ZDNet Newsletters
Get the best of ZDNet delivered straight to your inbox
