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Regulatory Spillovers and Data Governance: Evidence from the GDPR

Author

Listed:
  • Christian Peukert

    (Department of Strategy, Globalization and Society, HEC Lausanne, Université de Lausanne, 1015 Lausanne, Switzerland)

  • Stefan Bechtold

    (Department of Humanities, Social and Political Sciences, ETH Zürich, 8092 Zurich, Switzerland)

  • Michail Batikas

    (Supply Chain Management and Information Systems, Rennes School of Business, 35065 Rennes, France)

  • Tobias Kretschmer

    (Institute for Strategy, Technology and Organization, LMU Munich School of Management, 80539 Munich, Germany; CEPR Centre for Economic Policy Research, London EC1V 0DX, United Kingdom)

Abstract

We document short-run changes in websites and the web technology industry with the introduction of the European General Data Protection Regulation (GDPR). We follow more than 110,000 websites and their third-party HTTP requests for 12 months before and 6 months after the GDPR became effective and show that websites substantially reduced their interactions with web technology providers. Importantly, this also holds for websites not legally bound by the GDPR. These changes are especially pronounced among less popular websites and regarding the collection of personal data. We document an increase in market concentration in web technology services after the introduction of the GDPR: Although all firms suffer losses, the largest vendor—Google—loses relatively less and significantly increases market share in important markets such as advertising and analytics. Our findings contribute to the discussion on how regulating privacy, artificial intelligence and other areas of data governance relate to data minimization, regulatory competition, and market structure.

Suggested Citation

  • Christian Peukert & Stefan Bechtold & Michail Batikas & Tobias Kretschmer, 2022. "Regulatory Spillovers and Data Governance: Evidence from the GDPR," Marketing Science, INFORMS, vol. 41(4), pages 746-768, July.
    • Handle: RePEc:inm:ormksc:v:41:y:2022:i:4:p:746-768
    DOI: 10.1287/mksc.2021.1339
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    References listed on IDEAS

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    Cited by:

    1. Qiwei Han & Carolina Lucas & Emila Aguiar & Patrícia Macedo & Zhenze Wu, 2023. "Towards privacy-preserving digital marketing: an integrated framework for user modeling using deep learning on a data monetization platform," Electronic Commerce Research, Springer, vol. 23(3), pages 1701-1730, September.
    2. Guy Aridor & Rafael Jiménez-Durán & Ro'ee Levy & Lena Song, 2024. "The Economics of Social Media," CESifo Working Paper Series 10934, CESifo.
    3. Guy Aridor & Yeon-Koo Che, 2024. "Privacy Regulation and Targeted Advertising: Evidence from Apple’s App Tracking Transparency," CESifo Working Paper Series 10928, CESifo.
    4. Mert Demirer & Diego Jimenez-Hernandez & Dean Li & Sida Peng, 2024. "Data, Privacy Laws and Firm Production: Evidence from the GDPR," Working Paper Series WP 2024-02, Federal Reserve Bank of Chicago.
    5. Anna D’Annunzio & Antonio Russo, 2024. "Intermediaries in the Online Advertising Market," Marketing Science, INFORMS, vol. 43(1), pages 33-53, January.

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