In its report, based on evidence from data protection evidence, the Office of the Information Commissioner, justice minister Simon Hughes and Google itself, the Lords committee said that the court's judgment had resulted in material being blocked on the basis of "vague, ambiguous and unhelpful" criteria which did not reflect the current state of information technology.
Peers warned the court against trying to "enforce the impossible".
Committee chairman Baroness Prashar said:
Although this was a short inquiry, it is crystal clear that neither the 1995 Directive, nor the Court of Justice's interpretation of it reflects the incredible advancement in technology that we see today, over 20 years since the directive was drafted. Anyone anywhere in the world now has information at the touch of a button, and that includes detailed personal information about people in all countries of the globe.
More top news
Defending champions Arsenal squeezed into the FA Cup final despite a spirited fightback from Reading, who forced extra-time
A detective who led investigations into the Valley Parade fire tells ITV News there is "unequivocal" evidence the disaster was an accident.
Tonight will start off clear in many areas, but cloud will increase from the east overnight, bringing some light and patchy rain.