EU says firms like Google and Facebook must meet privacy rules

Companies based outside the European Union must meet Europe's data protection rules, ministers agreed on Friday, although governments remain divided over how to enforce them on companies operating across the bloc.

The agreement to force Internet companies such as Google and Facebook to abide by EU-wide rules is a first step in a wider reform package to tighten privacy laws - an issue that has gained prominence following revelations of US spying in Europe.

"All companies operating on European soil have to apply the rules," EU Justice Commissioner Viviane Reding told reporters at a meeting in Luxembourg where ministers agreed on a position also been backed by the Court of Justice of the European Union (ECJ).

Companies based outside the European Union must meet Europe's data protection rules, ministers agreed, although governments remain divided over how to enforce them on companies operating across the bloc.

The agreement to force Internet companies such as Google and Facebook to abide by EU-wide rules is a first step in a wider reform package to tighten privacy laws - an issue that has gained prominence following revelations of US spying in Europe. Under the new rules all EU countries will have the same data protection laws, meaning companies will no longer be able to challenge which laws apply to them in court.