GDPR and the Lost Generation of Innovative Apps


Paper by Rebecca Janßen, Reinhold Kesler, Michael E. Kummer & Joel Waldfogel: “Using data on 4.1 million apps at the Google Play Store from 2016 to 2019, we document that GDPR induced the exit of about a third of available apps; and in the quarters following implementation, entry of new apps fell by half. We estimate a structural model of demand and entry in the app market. Comparing long-run equilibria with and without GDPR, we find that GDPR reduces consumer surplus and aggregate app usage by about a third. Whatever the privacy benefits of GDPR, they come at substantial costs in foregone innovation…(More)”.

Roe draft raises concerns data could be used to identify abortion seekers, providers


Article by Chris Mills Rodrigo: “Concerns that data gathered from peoples’ interactions with their digital devices could potentially be used to identify individuals seeking or performing abortions have come into the spotlight with the news that pregnancy termination services could soon be severely restricted or banned in much of the United States.

Following the leak of a draft majority opinion indicating that the Supreme Court is poised to overturn Roe v. Wade, the landmark 1973 decision that established the federal right to abortion, privacy advocates are raising alarms about the ways law enforcement officials or anti-abortion activists could make such identifications using data available on the open market, obtained from companies or extracted from devices.

“The dangers of unfettered access to Americans’ personal information have never been more obvious. Researching birth control online, updating a period-tracking app or bringing a phone to the doctor’s office could be used to track and prosecute women across the U.S.,” Sen. Ron Wyden (D-Ore.) said in a statement to The Hill. 

Data from web searches, smartphone location pings and online purchases can all be easily obtained with little to no safeguards.

“Almost everything that you do … data can be captured about it and can be fed into a larger model that can help somebody or some entity infer whether or not you may be pregnant and whether or not you may be someone who’s planning to have an abortion or has had one,” Nathalie Maréchal, senior policy manager at Ranking Digital Rights, explained. 

There are three primary ways that data could travel from individuals’ devices to law enforcement or other groups, according to experts who spoke with The Hill.

The first is via third party data brokers, which make up a shadowy multibillion dollar industry dedicated to collecting, aggregating and selling location data harvested from individuals’ mobile phones that has provided unprecedented access to the daily movements of Americans for advertisers, or virtually anyone willing to pay…(More)”.

‘Agile governance’ could redesign policy on data protection. Here’s why that matters


Article by Nicholas Davis: “Although technology regulation is evolving rapidly in today’s world, such regulation remains greatly fragmented across national and regional divides. Agile governance can potentially solve this fragmentation by promoting nimbler, more fluid, and more adaptive approaches to regulation.

Whether it is privacy, cyber security, cyber warfare, national security, or prohibited content, every hot-button issue in technology governance today seems to be of global concern, yet resides in the hands of nationally-focused lawmakers relying on outdated policies that continue to reinforce the fragmentation of technology regulation.

Take data protection, for example. The EU’s General Data Protection Regulation (GDPR), which was first proposed in 2012 and came into effect in 2018, is essentially an international privacy law for data protection. Any organization that processes any personal data from any EU citizen is covered.

Beyond its extraterritorial impact, it has inspired similar efforts to update and improve data protection in other jurisdictions, such as in JapanChileEgypt, and the state of California in the United States…(More)”.

The European Data Protection Supervisor (EDPS) launches pilot phase of two social media platforms


Press Release: “The European Data Protection Supervisor (EDPS) launches today the public pilot phase of two social media platforms: EU Voice and EU Video.

EU institutions, bodies, offices and agencies (EUIs) participating in the pilot phase of these platforms will be able to interact with the public by sharing short texts, images and videos on EU Voice; and by sharing, uploading, commenting videos and podcasts on EU Video.

The two platforms are part of decentralised, free and open-source social media networks that connect users in a privacy-oriented environment, based on Mastodon and PeerTube software. By launching the pilot phase of EU Voice and EU Video, the EDPS aims to contribute to the European Union’s strategy for data and digital sovereignty to foster Europe’s independence in the digital world.

Wojciech Wiewiórowski, EDPS, said“With the pilot launch of EU Voice and EU Video, we aim to offer alternative social media platforms that prioritise individuals and their rights to privacy and data protection. In concrete terms this means, for example, that EU Voice and EU Video do not rely on transfers of personal data to countries outside the European Union and the European Economic Area; there are no advertisements on the platforms; and there is no profiling of individuals that may use the platforms. These measures, amongst others, give individuals the choice on and control over how their personal data is used.”

The EDPS and the European Commission’s Directorate General for Informatics (DIGIT) have collaborated closely throughout the development of EU Voice and EU Video. In line with the goals of the Commission’s Open Source Software Strategy 2020 – 2023, DIGIT’s technical assistance to the EDPS proves the importance of inter-institutional cooperation on open source as an enabler of privacy rights and data protection, therefore contributing to the EU’s technological sovereignty.

The launch of the pilot phase of EU Voice and EU Video will help the EDPS to test the platforms in practice by collecting feedback from participating EUIs. The EDPS hopes that this first step will mark a continuity in the use of privacy-compliant social media platforms…(More)”.

Guns, Privacy, and Crime


Paper by Alessandro Acquisti & Catherine Tucker: “Open government holds promise of both a more efficient but more accountable and transparent government. It is not clear, however, how transparent information about citizens and their interaction with government, however, affects the welfare of those citizens, and if so in what direction. We investigate this by using as a natural experiment the effect of the online publication of the names and addresses of holders of handgun carry permits on criminals’ propensity to commit burglaries. In December 2008, a Memphis, TN newspaper published a searchable online database of names, zip codes, and ages of Tennessee handgun carry permit holders. We use detailed crime and handgun carry permit data for the city of Memphis to estimate the impact of publicity about the database on burglaries. We find that burglaries increased in zip codes with fewer gun permits, and decreased in those with more gun permits, after the database was publicized….(More)”

The Limitations of Privacy Rights


Paper by Daniel J. Solove: “Individual privacy rights are often at the heart of information privacy and data protection laws. The most comprehensive set of rights, from the European Union’s General Data Protection Regulation (GDPR), includes the right to access, right to rectification (correction), right to erasure, right to restriction, right to data portability, right to object, and right to not be subject to automated decisions. Privacy laws around the world include many of these rights in various forms.

In this article, I contend that although rights are an important component of privacy regulation, rights are often asked to do far more work than they are capable of doing. Rights can only give individuals a small amount of power. Ultimately, rights are at most capable of being a supporting actor, a small component of a much larger architecture. I advance three reasons why rights cannot serve as the bulwark of privacy protection. First, rights put too much onus on individuals when many privacy problems are systematic. Second, individuals lack the time and expertise to make difficult decisions about privacy, and rights cannot practically be exercised at scale with the number of organizations than process people’s data. Third, privacy cannot be protected by focusing solely on the atomistic individual. The personal data of many people is interrelated, and people’s decisions about their own data have implications for the privacy of other people.

The main goal of providing privacy rights aims to provide individuals with control over their personal data. However, effective privacy protection involves not just facilitating individual control, but also bringing the collection, processing, and transfer of personal data under control. Privacy rights are not designed to achieve the latter goal; and they fail at the former goal.

After discussing these overarching reasons why rights are insufficient for the oversized role they currently play in privacy regulation, I discuss the common privacy rights and why each falls short of providing significant privacy protection. For each right, I propose broader structural measures that can achieve its underlying goals in a more systematic, rigorous, and less haphazard way…(More)”.

The GDPR effect: How data privacy regulation shaped firm performance globally


Paper by Carl Benedikt Frey and Giorgio Presidente:  “…To measure companies’ exposure to GDPR, we exploit international input-output tables and compute the shares of output sold to EU markets for each country and 2-digit industry. We then construct a shift-share instrument interacting this share with a dummy variable taking the value one from 2018 onwards.

Based on this approach, we find both channels discussed above to be quantitatively important, though the cost channel consistently dominates. On average, across our full sample, companies targeting EU markets saw an 8% reduction in profits and a relatively modest 2% decrease in sales (Figure 1). This suggests that earlier studies, which have focused on online outcomes or proxies of sales, provide an incomplete picture since companies have primarily been adversely affected through surging compliance costs. 

While systematic data on firms’ IT purchases are hard to come by, we can explore how companies developing digital technologies have responded to GDPR. Indeed, taking a closer look at some recent patent documents, we note that these include applications for technologies like a “system and method for providing general data protection regulation (GDPR) compliant hashing in blockchain ledgers”, which guarantees a user’s right to be forgotten. Another example is a ‘Data Consent Manager’, a computer-implemented method for managing consent for sharing data….

While the results reported above show that GDPR has reduced firm performance on average, they do not reveal how different types of firms have been affected. As is well-known, large companies have more technical and financial resources to comply with regulations (Brill 2011), invest more in lobbying (Bombardini 2008), and might be better placed to obtain consent for personal data processing from individual consumers (Goldfarb and Tucker 2011). For example, Facebook has reportedly hired some 1,000 engineers, managers, and lawyers globally in response to the new regulation. It also doubled its EU lobbying budget in 2017 on the previous year, when GDPR was announced. Indeed, according to LobbyFacts.eu, Google, Facebook and Apple now rank among the five biggest corporate spenders on lobbying in the EU, with annual budgets in excess of €3.5 million.

While these are significant costs that might reduce profits, the impact of the GDPR on the fortunes of big tech is ambiguous. As The New York Times writes, “Whether Europe’s tough approach is actually crimping the global tech giants is unclear… Amazon, Apple, Google and Facebook have continued to grow and add customers”. Indeed, by being better able to cope with the burdens of the regulation, these companies may have increased their market share at the expense of smaller companies (Johnson et al. 2020, Peukert et al. 2020). …(More)”.

Privacy As/And Civil Rights


Paper by Tiffany C. Li: “Decades have passed since the modern American civil rights movement began, but the fight for equality is far from over. Systemic racism, sexism, and discrimination against many marginalized groups is still rampant in our society. Tensions rose to a fever pitch in 2020, with a summer of Black Lives Matters protests, sparked by the police killing of George Floyd, leading in to an attempted armed insurrection and attack on the U.S. Capitol on January 6, 2021. Asian-Americans faced rising rates of racism and hate crimes , spurred in part by inflammatory statements from the then-sitting President of the United States. Members of the LGBT community faced attacks on their civil rights during the Trump administration, including a rolling back of protections awarded to transgender individuals.

At the same time, the world faced a deadly pandemic that exposed the inequalities tearing the fabric of our society. The battle for civil rights is clearly not over, and the nation and the world have faced setbacks in the fight for equality, brought out by the pandemic, political pressures, and other factors. Meanwhile, the role of technology is also changing, with new technologies like facial recognition, artificial intelligence, and connected devices, offering new threats and perhaps new hope for civil rights. To understand privacy at our current point in time, we must consider the role of privacy in civil rights—and even, as scholars like Alvaro Bedoya have suggested, privacy itself as a civil right.

This Article is an attempt to expand upon the work of privacy and civil rights scholars in conceptualizing privacy as a civil right and situating this concept within the broader field of privacy studies. This Article builds on the work of scholars who have analyzed critical dimensions of privacy and privacy law, and who have advocated for changes in privacy law that can move our society forward to protect privacy and equality for all…(More)”.

The New Rules of Data Privacy


Essay by Hossein Rahnama and Alex “Sandy” Pentland: “The data harvested from our personal devices, along with our trail of electronic transactions and data from other sources, now provides the foundation for some of the world’s largest companies. Personal data also the wellspring for millions of small businesses and countless startups, which turn it into customer insights, market predictions, and personalized digital services. For the past two decades, the commercial use of personal data has grown in wild-west fashion. But now, because of consumer mistrust, government action, and competition for customers, those days are quickly coming to an end.

For most of its existence, the data economy was structured around a “digital curtain” designed to obscure the industry’s practices from lawmakers and the public. Data was considered company property and a proprietary secret, even though the data originated from customers’ private behavior. That curtain has since been lifted and a convergence of consumer, government, and market forces are now giving users more control over the data they generate. Instead of serving as a resource that can be freely harvested, countries in every region of the world have begun to treat personal data as an asset owned by individuals and held in trust by firms.

This will be a far better organizing principle for the data economy. Giving individuals more control has the potential to curtail the sector’s worst excesses while generating a new wave of customer-driven innovation, as customers begin to express what sort of personalization and opportunity they want their data to enable. And while Adtech firms in particular will be hardest hit, any firm with substantial troves of customer data will have to make sweeping changes to its practices, particularly large firms such as financial institutions, healthcare firms, utilities, and major manufacturers and retailers.

Leading firms are already adapting to the new reality as it unfolds. The key to this transition — based upon our research on data and trust, and our experience working on this issue with a wide variety of firms — is for companies to reorganize their data operations around the new fundamental rules of consent, insight, and flow…(More)”.

Privacy and/or Trade


Paper by Anupam Chander and Paul M. Schwartz: “International privacy and trade law developed together, but now are engaged in significant conflict. Current efforts to reconcile the two are likely to fail, and the result for globalization favors the largest international companies able to navigate the regulatory thicket. In a landmark finding, this Article shows that more than sixty countries outside the European Union are now evaluating whether foreign countries have privacy laws that are adequate to receive personal data. This core test for deciding on the permissibility of global data exchanges is currently applied in a nonuniform fashion with ominous results for the data flows that power trade today.

The promise of a global internet, with access for all, including companies from the Global South, is increasingly remote. This Article uncovers the forgotten and fateful history of the international regulation of privacy and trade that led to our current crisis and evaluates possible solutions to the current conflict. It proposes a Global Agreement on Privacy enforced within the trade order, but with external data privacy experts developing the treaty’s substantive norms….(More)”.