Study - “The economic costs of weakening privacy and data protection” | Terms of Reference

A new study aims to assess the economic repercussions of weakening privacy and data protection within the European Union. This research, prompted by proposed revisions to the GDPR, will analyze the potential financial impacts on both consumers and businesses operating in the EU. The study's focus underscores growing concerns about the balance between technological advancement and safeguarding citizens' data rights. The study will examine three key scenarios related to the costs of inadequate privacy: the costs to consumers, the costs to companies failing to comply with data protection regulations, and the potential economic benefits of stronger data protection standards. It includes assessing the financial losses to consumers from data breaches and unauthorized data usage. The study will also analyze the compliance costs for businesses and the potential benefits of enhanced privacy frameworks. This analysis is particularly relevant given the European Commission's "Digital Omnibus" proposal, which could relax certain GDPR provisions. The findings will likely inform debates around digital policies, particularly those related to the EU's Digital Strategy. The study should provide insight into the economic effects of data protection, helping to shape future policy decisions and regulatory frameworks.