Personal Data Portability In The Platform Economy: Economic Implications And Policy Recommendations

Abstract

Article 20 of the General Data Protection Regulation (GDPR) gave consumers in the European Union the right to port their personal data between digital service providers. We critically assess the economic implications of this new right in the light of the extant economic literature and with a focus on competition and innovation in the digital platform economy. In particular, we conclude that observed user behaviour data should clearly fall under the scope of data portability and that, above and beyond the regulations set out under GDPR, a right to port personal data continuously and in real-time would be necessary to truly empower consumers in the context of the digital platform economy. We also discuss the economics of Personal Information Management Systems (PIMSs), which many policymakers see as an essential tool for consumers in an economy where data portability becomes more widespread. However, we are sceptical that PIMS will be self-sustainable and instead advocate to facilitate the development of open-source projects, which have made little progress so far due to a lack of interfaces (which would come about with a right to continuous data portability) and due to a lack of common standards.