Hi Christina,
There are a host of interesting laws about Data protection here.
One of the advantages of having a national system like Glow is we know where the data is and the decision is made once( to a certain extent, the Data controllers are Local Authorities here not the Government). So the Glow Blogs are hosted in the UK. Other parts of Glow satisfy different conditions, wikispaces satisfy safe harbour and the MS O365 tenancy is hosted in the EU. There is a range of attitudes to children publishing across the country but I think the tide is flowing in the right direction.