The Effects of GDPR on the Digital Economy

Evidence from the Literature

October 08, 2020

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Published by: Informatization Policy Journal, Vol. 27, No. 3 (2020), pp. 3-18


Abstract

In the growing digitalized world, the European Union implemented the General Data Protection Regulation (GDPR) to establish a comprehensive data protection framework across member states. Given the constitutional roots of GDPR, the EU's regulatory approach is different than other data protection regimes. The new regulation has strengthened individual rights to data protection, but it also introduced several obligations for businesses that collect and process personal data. We review the existing literature on privacy, particularly GDPR, from a policy perspective. The evidence outlines data regulation's effects on competition, innovation, marketing activities, and cross-border data flows. The discussion highlights the tradeoffs between increased regulation of data protection and its effects on the market.