What if Europeans were allowed to trade personal data?

A working paper by Bruegel Senior Fellow Fiona M. Scott Morton suggests creating a regulated market for personal data to prevent exploitation of EU citizens. The paper argues that the current debate is trapped between two extremes: the unrestricted use of data by platforms and consent rules so strict that they stifle data sharing. Scott Morton claims that both positions harm consumers and proposes a middle course that protects privacy while preserving digital services.

Currently, internet platforms capture billions in advertising revenue by exploiting user data with minimal consumer control or compensation. While stringent regulation protects fundamental rights, it risks making free digital services untenable if platforms cannot monetise data.

To resolve this, the paper draws an analogy with labour markets, which are heavily regulated to ensure trade occurs without violating fundamental rights. Morton suggests that data markets should be designed similarly, with protections against exploitation. This would require the European Data Protection Board (EDPB) to move beyond its stance that personal data cannot be treated as a tradeable commodity. By establishing a regulatory framework, policymakers could ensure that consumers receive both protection and compensation, enabling valuable data sharing while respecting EU data protection rules.

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