The EU does not recognise the sovereignty of Israel over the territories the country has occupied since 1967 (OTs) and applies a policy of differentiation vis-à-vis Israel and the OTs. In areas such as trade, origin labelling and EU-funded programmes, the EU has put measures in place to ensure that Israeli settlements in the OTs are not treated as part of Israel.
Likewise, the EU’s 2011 adequacy decision for Israel, which allows for the free flow of personal data, states in Article 2 that it should be applied in accordance with international law, i.e. excluding the OTs.
However, Israel treats the settlements as part of its territory for most purposes, including data transfer.