Impact of the General Data Protection Regulation on the Global Mobile App Market: Digital Trade Implications of Data Protection and Privacy Regulations
IF 5 3区 管理学Q1 INFORMATION SCIENCE & LIBRARY SCIENCE
Ziru Li, Gunwoong Lee, T. S. Raghu, Zhan (Michael) Shi
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引用次数: 0
Abstract
Although regional data protection and privacy regimes are often cited as major barriers to crossborder digital trade, mitigating consumer privacy concerns through regulations can potentially increase the demand for foreign digital products or services. This study delves into this by assessing the impact of the General Data Protection Regulation (GDPR) on the global mobile app market. Contrary to the belief that such regulations hinder digital trade, our data show a notable post-GDPR increase in top foreign apps in European Union countries, suggesting that the GDPR may alleviate privacy concerns and encourage the adoption of foreign digital products. This finding is crucial for policymakers dealing with data and privacy issues as it indicates the potential of these regulations to balance economic growth with privacy and security protection. The study suggests that data and privacy regulations can address data concerns without significantly harming digital trade. Additionally, it uncovers an opportunity for multinational companies. Although compliance costs are higher, clear privacy regulations could lessen consumer domestic bias, opening doors to international markets. Therefore, evaluating privacy regulations’ impact on global markets means considering both their benefits for demand and their costs for suppliers.
期刊介绍:
ISR (Information Systems Research) is a journal of INFORMS, the Institute for Operations Research and the Management Sciences. Information Systems Research is a leading international journal of theory, research, and intellectual development, focused on information systems in organizations, institutions, the economy, and society.