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Consumer data protection laws and their impact on business models in the tech industry

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  • Farhad, Mohsin Ali

Abstract

This study investigates the impact of consumer data protection laws on the business models of technology companies through a mixed methods research (MMR) approach. In an era where data privacy concerns are paramount and regulatory landscapes are rapidly evolving, understanding how businesses adapt their models for compliance while fostering innovation is crucial. This paper offers a detailed examination of the legislative requirements imposed by prominent global data protection laws, including the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), as well as frameworks from Asia and Africa, such as Singapore's Personal Data Protection Act (PDPA) and South Africa's Protection of Personal Information Act (POPIA). This inclusive perspective enhances our understanding of how technology businesses strategically adapt across various regulatory environments and explores the operational, financial, and strategic impacts of these laws on tech companies. Utilizing a dual-phase mixed methods research (MMR) design, the study initially analyzes quantitative data from surveys conducted with a wide range of technology firms, assessing the direct effects of data protection legislation on business operations and financial performance. This is complemented by qualitative insights drawn from in-depth interviews with business leaders and legal experts, shedding light on the strategic adaptations, challenges, and opportunities these laws present. The findings reveal a multifaceted impact, highlighting not only the compliance challenges but also the strategic opportunities for innovation and competitive differentiation that data protection laws offer. Integrated analysis of the quantitative and qualitative data provides a nuanced understanding of how tech companies navigate the complex interplay between legal compliance and business model innovation. This study contributes to the existing literature by offering empirical evidence and practical insights into the adaptation processes of tech companies in response to consumer data protection laws. It also provides valuable recommendations for both policymakers and business leaders, aiming to foster an environment where legal compliance coexists with technological innovation and business growth.

Suggested Citation

  • Farhad, Mohsin Ali, 2024. "Consumer data protection laws and their impact on business models in the tech industry," Telecommunications Policy, Elsevier, vol. 48(9).
    • Handle: RePEc:eee:telpol:v:48:y:2024:i:9:s0308596124001332
    DOI: 10.1016/j.telpol.2024.102836
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    References listed on IDEAS

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    1. Mandella Osei‐Assibey Bonsu & Samuel Clottey Attuquaye & Katie Hyslop & Ying Wang & Li Kaodui, 2026. "Do Corporate Strategies in Fintech and Green Finance Enhance ESG Performance? The Moderating Role of Government Policies," Business Strategy and the Environment, Wiley Blackwell, vol. 35(5), pages 6960-6981, July.
    2. Chris Gilbert & Mercy Abiola Gilbert, 2025. "Impact of General Data Protection Regulation (GDPR) on Data Breach Response Strategies (DBRS)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 760-784, March.
    3. Chongwoo Choe & Jiajia Cong & Noriaki Matsushima & Shiva Shekhar, 2025. "Privacy Regulations, Consumer Empowerment, and Versioning," Monash Economics Working Papers 2025-03, Monash University, Department of Economics.
    4. Yang, Chao & Luo, Haoxiang & Yang, Siyi & Li, Longquan & Liu, Qi, 2025. "Digital platforms and smart city synergies: Unlocking cross-sector innovation and governance in urban transformation," Technovation, Elsevier, vol. 147(C).
    5. Dongqing Chen & Chaoqun Ma & Liwei Zhang & Lijie Li, 2025. "Unraveling the role of data sharing in open finance diffusion: an evolutionary game approach on complex networks," Future Business Journal, Springer, vol. 11(1), pages 1-28, December.

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