Impact of the General Data Protection Regulation on the Global Mobile App Market: Digital Trade Implications of Data Protection and Privacy Regulations

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.