Personal Data: Economic Problems and Legal Regulation
https://doi.org/10.18288/1994-5124-2025-6-96-119
Abstract
The development of technologies and increasing volume of data worldwide calls for new models of digital business. However, new business models bring new problems in protecting personal data, which cannot be resolved within the existing legal framework. Current Russian legislation does not regulate the use of personal data for the personalization of advertising and services or the use of digital user profiles in the competition for users between different platforms. The paper offers a systematic account of the problems and challenges faced by the digital economy as a result of the existing legal arrangements for personal data protection. The purpose of this study is to develop optimal solutions for two kinds of problems that the authors identify: (1) disregard of user interests; and (2) excessive constraints on competition in digital markets. Disregard of user interests may consist of invasion of privacy and infringement of consumers’ economic interests, objectionable practices by platforms in collecting data, and digital profiling of users contrary to their interests, such as price discrimination among users and discrimination on social grounds. Uncontrolled collection and use of consumers’ personal data demand reform of the way in which consent to processing personal data is solicited so that the resources businesses and users devote to formal compliance with current legislative requirements are optimized. Digital markets also suffer from the monopolization of markets by the largest platforms, the use of pricing algorithms as an anti-competitive practice, and poor regulation of access to data that restricts scientific research and erects regulatory barriers to cross-border data transfer. The authors propose solutions that require not only amending legal standards but also facilitating interaction between digital businesses and regulators.
About the Authors
A. D. Levashenko
Russian Academy of Foreign Trade of the Ministry of Economic Development of the Russian Federation
Russian Federation
Russian Federation
Antonina D. Levashenko, Senior Researcher
6A, Vorob’evskoe shosse, Moscow, 119285
S. G. Sinelnikov-Murylev
Gaidar Institute for Economic Policy
Russian Federation
Russian Federation
Sergey G. Sinelnikov-Murylev, Dr. Sci. (Econ.), Professor, Scientific Director
3–5, Gazetnyy per., Moscow, 125993
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Review
For citations:
Levashenko A.D., Sinelnikov-Murylev S.G. Personal Data: Economic Problems and Legal Regulation. Economic Policy. 2025;20(6):96-119. (In Russ.) https://doi.org/10.18288/1994-5124-2025-6-96-119
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