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#Cross-sector, Tech, Media, Telecom

Consumer privacy in network industries

  • 25 January 2016
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Europe’s framework of privacy and data protection laws certainly needed reform. Digitised economies and data-centric business models have already exposed the shortcomings of current legislation. In this dynamic environment, the report finds that sector-specific privacy regulations are inadequate and should be reviewed with a view to withdrawal. Consistent, future-proof regulation requires a common approach to all industries, and the GDPR is, therefore, a move in the right direction.

However, the effectiveness of the GDPR may already be undermined by its own legislative history. Attempts to foresee and account for every possible exception and special case, and plans to reserve room for Member States to enact their own legislation, threaten to unravel the intended uniformity and clarification of the law.

While issues of privacy and data protection are often discussed in terms of human rights, this new CERRE report draws on an economic analysis to deliver useful insights that may be missed in the current discussion.

Based on this analysis, and without outsourcing the substantive principles of data protection to market mechanisms, the report calls for a re-casting of the GDPR to serve as a baseline – a set of mandatory minimum requirements on personal data protection. Around that baseline, private actors should be given greater room to contribute to the enforcement and development of the law.

Whereas setting the scope of the protected rights should remain a matter of public law, private actors can play a role through liability claims (when the baseline is not met) or through contractual arrangements going above and beyond that baseline. The GDPR already allows for private activities through codes of conduct and certification mechanisms, among others, but more must be done to enlist private actors.

At a time when Data Protection authorities are already hampered in their enforcement efforts by a lack of resources, the potential role of private activities remains underused.

Document(s)
REPORT | Consumer privacy in network industries
Author(s)
Pierre Larouche
Pierre Larouche
CERRE Honorary Academic Director
University of Montréal

Prof. Pierre Larouche is a CERRE Honorary Academic  Co-Director. He is Professor of Competition Law at Tilburg University and Vice Director of the Tilburg Law and Economics Center (TILEC), as well as Professor at the College of Europe (Bruges) and at the Institut d’Etudes Politiques (Paris).

Before starting his academic career in 1996 at the University of Maastricht, he clerked at the Supreme Court of Canada in 1991-1992 and practised law for three years in the European Community law unit of Stibbe Simont Monahan Duhot in Brussels.

Martin Peitz
Martin Peitz
CERRE Research Fellow
University of Mannheim

Professor Martin Peitz is a CERRE Research Fellow and Professor of Economics at the University of Mannheim. He is also a Director of the Mannheim Centre for Competition and Innovation.

His policy research focuses on digital markets, regulation, and competition economics.

Martin holds a PhD in Economics from the University of Bonn.

Nadya Purtova
Nadya Purtova
Associate Professor
Tilburg Law School

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