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GDPR Myopia: how a well-intended regulation ended up favouring large online platforms - the case of ad tech

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  • Damien Geradin
  • Theano Karanikioti
  • Dimitrios Katsifis

Abstract

This paper argues that while the GDPR has arguably delivered positive outcomes by enhancing the protection afforded to data subjects, it has also had adverse effects on competition by strengthening the position of large online platforms in certain markets. In addition, the GDPR has given large platforms a tool to harm rivals by restricting access to the data they need to compete effectively. The present paper focuses on digital advertising and the ad tech industry, where the GDPR appears to have strengthened Google and Facebook. The purpose of this paper is not to call for the weakening of the GDPR, whose positive impact on users cannot be ignored. While from a policy standpoint regulators should thus maintain or even increase the level of protection offered by this legislation, it is vital that they take steps to mitigate its adverse effects on other dimensions of welfare, such as competition.

Suggested Citation

  • Damien Geradin & Theano Karanikioti & Dimitrios Katsifis, 2021. "GDPR Myopia: how a well-intended regulation ended up favouring large online platforms - the case of ad tech," European Competition Journal, Taylor & Francis Journals, vol. 17(1), pages 47-92, January.
    • Handle: RePEc:taf:recjxx:v:17:y:2021:i:1:p:47-92
    DOI: 10.1080/17441056.2020.1848059
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    Cited by:

    1. 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.
    2. Blind, Knut & Niebel, Crispin Miles & Rammer, Christian, 2022. "The impact of the EU General Data Protection Regulation on innovation in firms," ZEW Discussion Papers 22-047, ZEW - Leibniz Centre for European Economic Research.

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