The European Union’s General Data Protection Regulation, a new set of privacy rules aimed at giving EU residents more control over their data, will go into effect this Friday, May 25. This regulation will have far-reaching effects, both online and offline, and affect companies around the world.
In a new Competitive Enterprise Institute report released today, CEI’s regulatory counsel and technology policy expert Ryan Radia, argues that the EU’s new privacy rules threaten innovation, reduce competition, and stifle the creation of new jobs, services, and products.
“The European Union’s General Data Protection Regulation is the most significant policy change regarding data collection and retention in history,” said Radia. “The economic effects will include greater market concentration, as small firms and startups struggle to comply, and result in conflicting priorities for businesses, greater inconvenience for users, and reduced innovation around the globe.”
According to the report, the GDPR rules purport to enhance transparency, privacy, and security, but they would result in reduced consumer choice and a worse user experience overall. Providing consumers with the digital rights to their data, which the GDPR attempts to do, is riddled with challenges and questions that remain to be understood by experts.
“By attempting to give consumers control over their data, the GDPR gives consumers a false sense of security at best,” said Radia. “As the United States considers new privacy legislation, lawmakers should resist calls to adopt the GDPR wholesale, given its many flaws.”