ABSTRACT
This Article will evaluate the consequences of the General Data Protection Regulation (‘GDPR’) implemented by the European Union (‘EU’) in 2018. Despite its aim to bolster user privacy, empirical evidence from thirty-one studies suggests a nuanced impact on market dynamics. While GDPR modestly enhanced user data protection, it also triggered adverse effects, including diminished startup activity, innovation, and increased market concentration. Further, this Article will uncover a complex narrative where gains in privacy are offset by compliance costs disproportionately affecting smaller firms. This Article will also highlight the challenges of regulating highly innovative markets, which is particularly important given subsequent EU regulations, such as the Digital Markets Act (‘DMA’) and Digital Services Act (‘DSA’). As other jurisdictions consider similar privacy regulations, the GDPR experience is a cautionary tale.
Yun, John M, A Report Card on the Impact of Europe’s Privacy Regulation (GDPR) on Digital Markets (April 10, 2024), George Mason Law Review Forum volume 31, pp 104-124 (2024); George Mason Law and Economics Research Paper No 24-08.
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