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Companies with 50 or more employees must establish a reporting channel starting from January 2025. The twelve priority areas of European Union law: If a violation (in the form of illegal activity or inaction) falls within these twelve areas of EU law, reporting the violation is covered under the scope of the draft Whistleblower Protection Act: 1) public procurement, 2) financial services, 3) product safety, 4) transport safety, 5) environmental protection, 6) radiation protection and nuclear safety, 7) food and feed safety, 8) public health, 9) consumer protection, 10) privacy and personal data protection, 11) breaches affecting the Union's financial interests, and 12) violations of competition and state aid rules, as well as possible corporate tax fraud related to the EU.

Most member states already have laws addressing whistleblowing and protecting those who disclose information. However, these laws often vary in their effectiveness, creating challenges in dealing with international companies and ensuring that countries continue to cooperate effectively. The directive aims to protect and enable whistleblowers across all EU countries to raise concerns anonymously without fear of retaliation.

Whistleblower protection at the EU level can help detect, prevent, and address corruption, fraud, and other crimes that affect the EU's financial interests. The level of protection offered to whistleblowers can vary significantly between countries. Some EU member states have comprehensive laws, while others have fewer or less strict regulations, which can negatively impact the functioning of other EU policies and undermine the market. For example, while many countries already have whistleblower protection in place, some countries only cover sectors such as corruption and the public sector, making protection insufficient across the EU.

The directive protects whistleblowers when they report violations in the following areas: public health, food safety, animal health and welfare, consumer protection, transport safety, product safety, environmental protection, nuclear safety, terrorism financing, public procurement, anti-money laundering and financial services, as well as privacy and personal data. The directive also applies to breaches of union competition rules, potential harm to EU financial interests, and agreements that contradict corporate tax laws leading to tax benefits. Other channels have become less viable. Using a call center involves speaking to a person who is likely to ask detailed questions, which may reduce the whistleblower's confidence in disclosing information. Telephone-based reports are decreasing steadily and make it challenging to provide support after disclosure. Using an ombudsman allows access to a legal expert, but a lack of trust or assurance of anonymity can discourage potential whistleblowers from coming forward. An anonymous mailbox makes it nearly impossible to track the whistleblower and does not comply with the EU directive.