Normative Review of EU Unilateral Data Flow Regulation and Non-Discrimination

Abstract

The rapid expansion of the digital economy has intensified regulatory tensions surrounding cross-border data flows. The European Union’s unilateral measures—particularly the General Data Protection Regulation (GDPR) and the adequacy decision mechanism—have reshaped global data governance. While intended to safeguard personal data, these measures raise concerns regarding their compatibility with the principle of non-discrimination under the WTO/GATS framework and their broader implications for international digital trade. This study employs a normative legal research approach, analyzing primary legal sources including the GDPR, WTO/GATS provisions, adequacy decisions, and relevant jurisprudence of the Court of Justice of the European Union. It also incorporates comparative policy analysis and doctrinal interpretation to evaluate the trade-related effects of the EU’s unilateral regulatory actions. The research aims to assess whether the EU’s unilateral regulation of cross-border data transfers constitutes a legitimate exercise of regulatory sovereignty or functions as a disguised restriction on trade. It further seeks to examine the extent to which such measures align with the non-discrimination principle in international digital trade law. The findings indicate that although the GDPR’s extraterritorial scope enhances global data protection standards, its compliance requirements impose disproportionate burdens—particularly on developing countries—potentially amounting to non-tariff barriers. Selective adequacy decisions risk undermining multilateralism, contributing to regulatory fragmentation, and widening the global digital divide. This study contributes a normative trade-law perspective to the discourse on EU data governance, critically linking data protection regulation with WTO non-discrimination principles and highlighting the need for more inclusive, transparent, and multilateral digital governance reforms.