INTERNATIONAL FOCUS
IS PERSONAL DATA THE NEW CURRENCY? Personal Data as a Tradeable Commodity in the Digitial Era: A European Perspective
Eirini Vyzirgiannaki
Member of ELSA Athens
As we transition into the digital era, the traditional economic model shifts towards a data-driven one. Not only is there an enormous volume of digital data available, but also an array of advanced methods to process it and extract monetary value from it. The personal data of European citizens has the potential to be worth nearly €1 trillion annually by some estimates.1 In this light, could one argue that data is the currency of today's digital economy? Is it possible to conceptualise personal data as a tradeable commodity? Given that data protection amounts to a fundamental right in Europe, can personal data be treated as a mere economic asset? Three data-centred business strategies are prevalent in contemporary digital markets.2 In the ‘zero-price’ or ‘data as payment’ model, consumers provide their personal data in exchange for digital services or products that are otherwise advertised as free of charge. In the ‘personal data economy’ users may supply their data to businesses and obtain value from this exchange. Finally, the ‘pay for privacy’ model 1 European Commission, ‘Questions and Answers - Data protection reform package’ (24 May 2017) <https://ec.europa.eu/commission/ presscorner/detail/en/MEMO_17_1441> accessed 1 October 2021. 2 Stacy-Ann Elvy, ‘Paying for Privacy and the Personal Data Economy’ (2017) 117 Columbia Law Review 1369. 16 | SYNERGY Magazine
requires consumers to pay a higher price if they do not consent to the collection and processing of their data, while offering discounts to those who do. Data subjects are, thus, perceived as owners of wealth that can be shared on their own terms. Consumers may supply their personal data as a means of payment, a non-pecuniary counter-performance, in agreements for digital services and content. In turn, businesses can harness the collected data to generate revenue either directly or indirectly.3 Namely, they can extract monetary value by selling or licensing it. They can also increase profit by using consumers’ data for product improvement, personalised services or offers, and targeted advertising. However, treating personal data as a non-pecuniary currency cannot accurately reflect the value exchange that occurs in a transaction. As personal data is inherently dynamic and fluid and cannot obtain a standardised value, it is challenging to quantify its commercial worth.4 Furthermore, as a non-depletable asset, it can be exploited indefinitely 3 Beate Roessler, ‘Should Personal Data Be a Tradable Good? On the Moral Limits of Markets in Privacy’ in Beate Roessler and Dorota Mokrosinska (eds), Social Dimensions of Privacy (CUP 2015). 4 Rebecca Kelly and Gerald Swaby, ‘Consumer Protection Rights and “Free” Digital Content’ (2017) 23(7) Computer and Telecommunications Law Review 165.
