Surprised that no one mentioned the new EU data protection directive, which goes a long way to fix the first issue mentioned in the article, the loss of control over our personal data (only for users in Europe though). I studied it in detail as I work in data analysis and consult companies on this, and I honestly think it is one of the best laws produced by the EU so far: It gives users a multitude of rights such as…
People often joke about the EU being toothless don't they? What penalties exist, as presumably their is a grace period to this that gives companies the time to build the systems in order to respect it? I feel like most small companies will find a way to skirt (or ignore) this as such systems could likely match the complexity of their products themselves..
But you're right, in the end it will depend on how severely the individual EU countries as well as the commission persecute companies that don't obey the standards. And like in other areas there will be fraud and companies trying to circumvent the regulation. All in all I think the standard for data protection will increase significantly.