The Cost of Data Privacy Regulations

Data privacy regulations, such as the European Union's General Data Protection Regulation (GDPR), are designed to protect consumer information; however, they may inadvertently marginalize low-income consumers and harm small businesses. Large companies like Meta and Google are better positioned to navigate compliance costs, while smaller businesses struggle with the administrative burden, often facing penalties for non-compliance. This creates an uneven playing field in digital marketing, where bigger firms continue to dominate the market instead of reducing their power as initially intended by the regulations. Consequently, these regulations may reinforce the existing inequalities in consumer access to goods and services while stifling the competition from emerging businesses.