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The Effects of GDPR on the Digital Economy: Evidence from the Literature

  • Informatization Policy
  • Abbr : 정보화정책
  • 2020, 27(3), pp.3-18
  • DOI : 10.22693/NIAIP.2020.27.3.003
  • Publisher : NIA
  • Research Area : Social Science > Public Policy
  • Received : August 26, 2020
  • Accepted : September 14, 2020
  • Published : September 30, 2020

Aryamala Prasad 1 Daniel R. Pérez 1

1George Washington University

Accredited

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.

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