Non-EU companies must meet European data protection rules, potentially impacting the activities of internet players such as Facebook and Google, according to a Reuters report.

Under the current regime, overseas companies which operate in Europe need to comply with the regulations of the country in which they are based, leading to claims of “jurisdiction shopping”, where subsidiaries are established in markets with the most relaxed rules.

But under new rules, all EU countries will have the same data protection requirements. “This will cut red tape for companies and citizens and make sure data protection rules are applied consistently throughout the EU,” the regulator said.

In a statement on Friday, the EU said that actions being taken by its Justice Council are in the interests of the companies involved, as it is beneficial “to have legal certainty rather than having to spend money in costly lawsuits only to arrive at the same result in the end”.

Reuters noted that earlier this year a German court ruled that Facebook was subject to German data protection laws, even if its European base is in Ireland.