NBER

KC Claffy

University of California, San Diego
San Diego Supercomputer Center
9500 Gilman Dr. Mail Stop 0505
La Jolla, CA 92093-0505
United States

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Center for Applied Internet Data Analysis

NBER Working Papers and Publications

November 2019The Impact of the General Data Protection Regulation on Internet Interconnection
with Ran Zhuo, Bradley Huffaker, Shane Greenstein: w26481
The Internet comprises thousands of independently operated networks, interconnected using bilaterally negotiated data exchange agreements. The European Union (EU)’s General Data Protection Regulation (GDPR) imposes strict restrictions on handling of personal data of European Economic Area (EEA) residents. A close examination of the text of the law suggests significant cost to application firms. Available empirical evidence confirms reduction in data usage in the EEA relative to other markets. We investigate whether this decline in derived demand for data exchange impacts investment in interconnection by networks in the EEA relative to networks in non-EEA OECD countries. Our data consists of a large sample of interconnection agreements between networks globally in 2015–2019. All evidence es...

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