Digital privacy, consumer protection and competition law - three sides of the same coin?

Privacy and consumer vulnerability online are two issues that have grown in importance and relevance. With increased digitization, privacy and consumer protection have been joined by a competition law companion. How are consumer rights and user privacy actually affected by the emergence of dominant digital platforms that account for an increasing share of market supply?

At least that's what our three supervisory authorities, the Swedish Data Protection Authority, the Swedish Competition Authority and the Swedish Consumer Agency, are thinking. As their areas of supervision are increasingly overlapping, they organized a webinar on privacy, consumer protection and competition in the data-driven society.

From the speakers and panelists to the directors-general of public authorities, everyone agreed that it is problematic when consumers' and users' behaviors are monitored when they visit different services and websites. And that their data is being used in a way and to an extent that many are not aware of.

What was surprisingly silent was the enormous benefits and value that consumers and users derive from using all these data-driven services. Are ever-increasing consumer benefits, largely based on customization and specialization based on information about the users of the services, something that is taken for granted? It seems to be a common assumption made by many. Perhaps even regulators. Much of the value created by various data-driven services would not have been possible without both access to data and a large degree of freedom to experiment. As we know, learning something new is based on learning from our mistakes. This is true in everything from youth soccer to business.

Obviously, it is important to curb unwanted use of personal data and to ensure that consumers can shop safely online. Here, of course, suppliers have a great responsibility to build and offer trust-building services to the market. However, to pre-regulate the right of companies to develop new business models, as some suggest, is going too far in the ambition to protect consumers. Instead, regulators, consumer representatives and providers helping consumers and users to gain greater knowledge and understanding of how their data is used and what rights they have is probably a far more effective and efficient way forward.

Here you can access my presentation from the webinar: "Digital consumer benefits and digital consumer protection".

Pär Nygårds
Industrial policy expert, IT&Telecom companies