EU Data Protection Could Clamp Data Flows
Pointing to this Financial Times article, an unnamed reader excerpts: "'The wide-ranging directive aims to protect data about EU citizens against misuse worldwide. It is backed by the power to cut off data flows to countries that the EU judges not to have adequate data protection rules and enforcement.'"
USA already has extraterritorial laws of this nature. For instance, one law enacted circa 1997 says that any US citizen has the right to sue anyone from anywhere that does business with a Cuban entity (specifically, a Cuban entity which uses native Cuban resources that the US citizen considers his or hers). Not only that, but the lawsuit would take place in a US court.
Another one is the US law which prohibits trade with nations that the US considers to have "inadequate" copyright protections.
This legislation by the EU has been mentioned in Slashdot earlier, before it was temporarily shelved due to US pressure. The status quo is that US organizations like Microsoft can easily build up a vast array of information on citizens in, say, Germany, whereas German companies are prohibited from doing the same due to privacy protection laws. Hence, this law which applies the same standard to everyone who does "business" with Germans.
Basically, it put a lid on most slimy marketing practices that misuse personal data. Too many US companies are used to getting away with this, and much of the direct mail industry depends on it.
But it has zero effect on open source or anything like that.