Europe's Reaction Against the SOX Anonymous Whistleblowing Rule

Watching the reaction of European data protection authorities to the anonymous whistleblower requirement set forth in ' 304 of the Sarbanes-Oxley Act of 2002 (SOX) has been like watching an ongoing heavyweight prize fight. In one corner, representing the U.S. and its recent history of corporate frauds, stands the SOX champion determined to use all means to prevent future frauds. In the other corner, representing Europe's 20th-century history, which unfortunately includes use of anonymous 'informants' to 'denounce' and silence or kill opponents of repressive regimes in Germany, France and elsewhere, stands the European Union (EU) data protection champion resolved to protect what Europeans view as the fundamental human right of privacy. The SOX and EU champions have exchanged blows, neither has given up much ground, and the match appears to be headed into the late rounds. The audience of multinational corporations required to comply with both SOX and EU data protection laws can only watch, do their best to implement anonymous whistleblower mechanisms in compliance with both SOX and EU privacy law, and wait until the contest is ultimately decided.