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In 2010, the EU Parliament passed a law to protect consumers in using the internet from “cookies,” which track computer usage and can thus compromise privacy. The EU’s 27 states had to codify the new law, but it was feared at the time that each state “might interpret the law differently, creating a nightmare of conflicting standards.” According to John Vassallo, Microsoft’s legal counsel in Brussels, “In the end, what matters is harmonized rules across Europe.” Ironically, it was the lobbying by Europe’s Internet-advertising industry group that led to the wiggle-room in the EU law that could spawn different state interpretations and implementations at the expense of European integration. Britain, for example, was expected to go along with the industry’s interpretation in which a browser’s settings that allow cookies would count as consent by the user. The French state Assembly, however, was leaning toward requiring that a browser ask the user upfront whether to accept future cookies. In this difference—in which the internet advertising industry preferred Britain’s approach—the “strong state / weak state” distinction can be seen. That is, the French legislature was more resistant to the influence of the industry that had a vested interest in the law.  As an aside, it can be noted that for that industry to lobby constituted a conflict of interest.

In terms of European federalism, the interest of big business in political consolidation at the EU level can be seen. At the same time, the influence of business in pulling some state governments away from a strict interpretation of an EU law not friendly to business can also be seen. Overall, the impact of big business is probably toward more governmental sovereignty being transferred to the EU (at some point being at the expense of the innate diversity within the EU).

In terms of the “cookie” law in particular, EU’s federalism seems well-suited, given the uncertainty involved in how to protect consumers on the internet. In general terms, a general law allowing a certain extent of diversity in application may be preferable to a US-style “one-size-fits-all.”  This is especially so in an empire-scale federal system such as the EU or US wherein diversity is inherent.

Source: “EU Chews on Web Cookies,” Wall Street Journal, November 22, 2010, pp. B1-2.

See my related essay on the regulation of cookies in the US and application of ethical theory to the topic:
http://thewordenreport.blogspot.com/2011/02/online-privacy-and-advertising.html