Artificial Intelligence and Data Regulations: Can stricter privacy laws provide a lifeline for European companies?
Bienz, Knudsen, Pohl & Belik (2019) Artificial Intelligence and Data Regulations: Can stricter privacy laws provide a lifeline for European companies?, Magma 08/19
Stricter privacy laws are often lifted as a disadvantage for European firms in their competition against US or Asian big techs. But is this really given, or can these stricter laws actually provide a lifeline for European companies?
A popular narrative is that stricter data protection laws in Europe puts European ai- and data-driven companies at a disadvantage vis-à-vis international tech giants like Google, Facebook and Alibaba, that are not subject to similar restrictions in their home markets. In this paper, we propose an alternative narrative, namely that that stricter European data protection laws may actually prove to be beneficial for European firms.