The Limitations of European Data Protection As A Model for Global Privacy Regulation

Abstract

The consensus view is that European-style data protection (including the General Data Protection Regulation (2016/679) (GDPR)) is becoming the global standard. But this view is not shared by all, with scholars pointing to divergence between European and American approaches to privacy. Determining the relative influence of each model is important. Regulation of the private sector use of personal data can shape economic and social conditions, from the cost of running a business to the relationships between consumers, companies, and their governments. This essay argues that it is too soon to conclude that the European Union has won the competition to influence global data protection and privacy laws, especially as the United States finds itself in the midst of shaping and defining its own privacy regime. I will explore the GDPR's viability as a global regulatory model, raising reasons to doubt that it will ultimately dominate the privacy regulation market. First, the mere fact that the United States is likely to develop a federal privacy regime that will depart from the European model will be influential in its own right. Second, there are compelling economic reasons for private and public entities to lobby against European-style regulation.