17.5 GDPR

To code up privacy notice (i.e., detect privacy-related text or not), we can use (C. Chang et al. 2019) to detect privacy policy under GDPR.

(Janssen et al. 2022)

  • Data: 4.1 mil apps on Google Play Store (2016-2019)

  • GDPR forces a third of apps exit and app introduction fell by half.

  • GPDR reduces

    • consumer surplus

    • app usage

  • There is a tradeoff between privacy and innovation.

(Kelly D. Martin, Borah, and Palmatier 2017)

  • Data: mobile app market

  • Volatility is defined as the the volatity in top-ranking charts at the category level (a proxy for the competition intensity among apps).

  • GDPR increases the volatility of the free app market (pro-competitive effect)

  • GDPR decreases the volatility in the paid app market (anti-competitive effect)

  • Data privacy regulation

    • Anti-competitive (high compliance costs)

      • Fewer entries

      • more exists

      • Harder for smaller business

    • Pro-competitive (Challenges of data collection of utilization)

      • fines under GDPR is costlier for bigger firms

      • more difficult for established firms to ensure third-party’s compliance.

(Kollnig et al. 2021)

  • Data: 2 mil Android apps

  • GPDR has limited change in the presence of third-party tracking in apps.

  • There are still a few big gatekeeper corporations with a disproportionate amount of tracking capability both before and after GDPR

(Betzing et al. 2020)

  • when privacy policies are transparent, there is a greater understanding of how data is processed (i.e., comprehension of data processing), but acceptance percentages do not change.

(Kreuter et al. 2020)

  • Data: 4,300 invitees and 650 participants

  • People are willing to share their data freely even after GDPR.

  • No matter how different data requests are made, people are still willing share their data regardless

  • Explanations regarding data collection and usage are not read carefully.

(Godinho de Matos and Adjerid 2022)

  • The General Data Protection Regulation (GDPR) is a significant shift in global privacy regulation.

  • Focuses on enhanced consumer consent requirements for transparent data allowances.

  • Evaluation of the impact of enhanced consent on consumer opt-in behavior and firm behavior and outcomes.

  • Utilizing an experiment at a telecommunications provider in Europe, the study finds:

    • Increased opt-in for different data types and uses with GDPR-compliant consent.

    • Consumers did not uniformly increase data allowances and continued to restrict permissions for sensitive information.

    • Increased sales, efficacy of marketing communications, and contractual lock-in after new data allowances provided by consumers.

    • These gains to the firm resulted from the ability to increase targeted marketing efforts for households that were receptive.

  • Similar to GPDR, California Consumer Privacy Act (US), The General Data privacy law (Brazil)

References

Betzing, Jan Hendrik, Matthias Tietz, Jan vom Brocke, and Jörg Becker. 2020. “The Impact of Transparency on Mobile Privacy Decision Making.” Electronic Markets 30 (3): 607–25.
Chang, Cheng, Huaxin Li, Yichi Zhang, Suguo Du, Hui Cao, and Haojin Zhu. 2019. “Automated and Personalized Privacy Policy Extraction Under GDPR Consideration.” In International Conference on Wireless Algorithms, Systems, and Applications, 43–54. Springer.
Godinho de Matos, Miguel, and Idris Adjerid. 2022. “Consumer Consent and Firm Targeting After GDPR: The Case of a Large Telecom Provider.” Management Science 68 (5): 3330–78.
Janssen, Rebecca, Reinhold Kesler, Michael E Kummer, and Joel Waldfogel. 2022. “GDPR and the Lost Generation of Innovative Apps.” National Bureau of Economic Research.
Kollnig, Konrad, Reuben Binns, Max Van Kleek, Ulrik Lyngs, Jun Zhao, Claudine Tinsman, and Nigel Shadbolt. 2021. “Before and After GDPR: Tracking in Mobile Apps.” arXiv Preprint arXiv:2112.11117.
Kreuter, Frauke, Georg-Christoph Haas, Florian Keusch, Sebastian Bähr, and Mark Trappmann. 2020. “Collecting Survey and Smartphone Sensor Data with an App: Opportunities and Challenges Around Privacy and Informed Consent.” Social Science Computer Review 38 (5): 533–49.
Martin, Kelly D, Abhishek Borah, and Robert W Palmatier. 2017. “Data Privacy: Effects on Customer and Firm Performance.” Journal of Marketing 81 (1): 36–58.