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While the U.S. debates enacting tougher privacy rules, "Europe offers a laboratory for studying their economic impact," reports MIT's Technology Review. Advertisers point to the effect European privacy rules have had on the region's €20.9 billion online advertising sector. And MIT's Catherine Tucker found in her 2010 study that within European countries that implemented the EU's 2002 e-Privacy Directive, online ads' efficacy dropped 65 percent. Additional research indicates European regulations have scared off investors--by 73 percent, estimates one expert. Others, however, have found the rules a boon to business.
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