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The EU’s General Data Protection Regulation (GDPR) has proven to be “slowing down innovation” in the Android app market.

That’s according to a recently released report by the National Bureau of Economic Research (NBER), a nonprofit research organization based in Cambridge, Massachusetts, which monitored data from 4.1 million apps on Google Play. Store between 2016 and 2019.

The NBER research, which comes four years after the GDPR was introduced in the EU, says the legislation has killed just under a third (32.4%) of apps available on the Google Play Store.

It also led to a decrease in the number of new Android app developments, with market entry of new apps falling by almost half (47.2%) in the months following the implementation of the privacy laws. data protection in May 2018. This has led to less innovation and greater market dominance by a few selected players, the report’s authors warned.

The results also suggest that new apps entering the Google Play Store after the GDPR was implemented had higher average usage, with the authors suggesting this may be due to greater financial investment in app development. since May 2018. The new applications were also less used. likely to offer the same financial rewards as before GDPR, with NBER researchers saying developer profits could have dropped by up to 58% since its implementation. As Android app development has become less lucrative over the past four years, fewer developers are willing to take the risk of investing resources in an app that has little chance of becoming a successful product.

The authors of the research paper concluded that “GDPR, despite its beneficial effects on privacy, has also produced the unintended consequence of slowing down innovation.”

However, they also noted that, to fully assess the impact of GDPR, their research would also need to measure the effect of data protection and user privacy legislation – areas the paper did not cover.

The need for greater innovation has been cited as one of the main reasons the UK is considering a potential overhaul of the GDPR – a move that was recently criticized by new Information Commissioner John Edwards.

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