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Virtual Conference on Melaka International Social Sciences, Science and Technology 2025
ISSN: 2454-6186 | DOI: 10.47772/IJRISS | Special Issue | Volume IX Issue XXIII October 2025
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Factors Influencing Data Protection on Global Trade
Dayang Nur Melyssa Aleya Aziz
1
, Maizatul Saadiah Mohamad
2
, Roszi Naszariah Nasni Naseri
3
,
Suhaida Mohd Amin
4
, Noraeffa Md Taib
5
, Harniyati Hussain
6
,
Joeaiza Juhari
7
,
Khaizie Sazimah
Ahmad
8
, Ali Murtadho
9
, Nurfatoni
10
2,3,6,7,8
Faculty of Business and Management, UiTM Cawangan Melaka, Kampus Alor Gajah, Melaka,
Malaysia
1,4,5
Faculty of Business and Management, UiTM Cawangan Melaka, Kampus Bandaraya, Melaka,
Malaysia
9,10
Faculty of Economy and Islamic Business UIN Walisongo, Indonesia
DOI: https://dx.doi.org/10.47772/IJRISS.2025.923MIC3ST250011
Received: 12 August 2025; Accepted: 20 August 2025; Published: 24 October 2025
ABSTRACT
Due to the growth of the internet and e-commerce, many organizations and customers have dealt with risks
resulting from leakage, sharing of customers’ data, and enforcement of laws governing data protection. This
paper is an attempt to examine impact of e commerce platform policies, user privacy preferences and
institutional quality with respect to data protection in global trade. Though measures like GDPR and CCPA
that have been put in to curb use of data have been put in to practice, their efficiency differs from one platform
to another as well from one jurisdiction to the other. Lack of uniformity in the corporate data policies,
consumer awareness, and inadequate enforcement of regulatory policies become a hurdle in the process of
maintaining the data protection policy. Thus, this research is to assess the effects of the e- commerce platform
policies, user privacy preferences, and institutional quality on data protection in global trade.
Keywords: Data Protection, E-commerce Policies, User Privacy, Institutional Quality, Global Trade
INTRODUCTION
Research Background
Currently, the ability to freely transmit information across borders is essential for conducting international
commerce. Additionally, it makes it easier for businesses to operate and acquire the necessary goods and
markets to drive economic growth and innovation. However, worries about data security and privacy have
contributed to the surge in the volume of bandwidth being exchanged. Anupam Chander (2013) claims that a
new geography of privacy and trade is developing, with data privacy rules focusing on global trade.
Current data protection regulations, such as the General Data Protection Regulation (GDPR) of the European
Union, have made doing business internationally more difficult. The primary goals of the GDPR, which went
into effect in 2018, are to safeguard personal information and uphold the rights of individuals in the EU.
Despite how important these rules are for protecting consumers, they present a variety of difficulties for
foreign businesses that must adhere to several legal frameworks and laws. According to (Elisabeth Meddin,
2020), the GDPR may infringe many terms of the General Agreement on commerce in Services (GATS) and
has restrictive impacts on commerce.
Problem Statement
But because privacy rules vary from one nation to another, there is a chance that regulations may become
fragmented, particularly when it comes to cross-border data transfers. These regulations, which differ for
trading companies in different countries, raise operating costs and restrict access to new markets. As
MIC3ST 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
Virtual Conference on Melaka International Social Sciences, Science and Technology 2025
ISSN: 2454-6186 | DOI: 10.47772/IJRISS | Special Issue | Volume IX Issue XXIII October 2025
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governments and businesses strive to integrate the use of data in commerce globally, it is imperative to look at
the elements that affect data protection in global trade. A comprehensive approach to data management is
necessary since different data models and rules impact the volume of commerce in digital services, according
to Martina Ferrcane (2021).
It is concerning because there is a greater chance of data abuse as e-commerce usage increases. Although well-
known online marketplaces like Amazon, eBay, and others are supposed to safeguard customer data, privacy
violations and cybercriminals are undermining consumer trust. Therefore, even with regional and international
laws like the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR),
there is an issue with the low efficacy of data protection laws. Many users report instances of identity theft and
illegal information exposure, which raises questions about the platforms' policies and their ability to enforce
them (Brown, J., 2021).
The varying degrees of dedication to security rules by e-commerce platforms are among the causes of this
ongoing issue. Although some platforms have strong data protection features built into their systems, others
could take advantage of legal loopholes to restrict user access over their data. Furthermore, user privacy
preferences exacerbate the situation. While some users will take every precaution to preserve their privacy and
prevent other parties from accessing their data, others may unintentionally give their login credentials to third
parties. This discrepancy in user understanding and involvement may make data protection even more
problematic (Jones & Lee, 2019).
The examination of other important variables also shows that, while platform regulations and user preferences
have a role in how successful data protection systems are, institutional quality is a key determinant of system
efficacy. Due to variations in legal protection regimes and how they are enforced, protection standards also
vary throughout nations. As previously said, such nations have comparatively lax regulatory enforcement,
which results in even worse data privacy safeguards, leaving users uneasy. However, fewer research looked at
how platform policies, user preferences, and institutional quality relate to each other and how they affect e-
commerce data protection.Consequently, there is a gap in the literature that necessitates the use of a conceptual
framework in this study in order to comprehend the dynamic interplay of the factors.
Urgency to Conduct Study
As digitization results in enormous trans-border information transfers, protecting such data has become crucial
to international trade. Despite predictions from the OECD (2020) that data flows have increased more than 45
times in the past decade, the data contributes significantly more to the global economy's GDP than the sale of
tangible commodities. Despite the remarkable rate of adoption in recent years, only 40% of nations globally
have enacted complete data protection laws, which has led to a fragmentation of legal norms. For the
protection of international data flow, which is essential to trade liberalization, this mismatch necessitates
sensible, coordinated data protection measures (Smith, 2019).
The issue is made worse by the fact that data protection laws are still inconsistent across different jurisdictions.
With its General Data Protection Regulation (GDPR), the European Union (EU) has set the standard, affecting
almost 25% of global businesses by 2020 (Jones & Patel, 2020). However, just 10% of countries in Sub-
Saharan Africa, including the United States, have data protection laws, and many parts of the world still lack
them (Kumar, 2018). Because rules differ between nations, the existing regulatory environment becomes
problematic when businesses conduct business internationally.
International trade is significantly impacted by data protection laws, particularly in the technology and
commerce sectors. According to a World Bank analysis from 2021, countries with stronger data privacy
regulations attract more foreign direct investment (FDI) than those with weaker systems; FDI can increase by
up to 25% when data is properly safeguarded. However, as the EU-US Privacy Shield conflict showed,
protecting personal information can result in the creation of trade barriers and have negative economic effects
(Adams, 2020). Therefore, while having strong data privacy laws is ideal for facilitating data in international
business, there are drawbacks, such as the need to ensure free and effective cross-border trade.
MIC3ST 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
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Research Objective
Research Objective 1:
To determine the relationship between e commerce platform policies and data protection on global trade.
Research Objective 2:
To determine the relationship between user privacy preferences and data protection on global trade.
Research Objective 3:
To determine the relationship between institutional quality and data protection on global trade.
Research Questions
Research Question 1:
Is there any significant relationship between e-commerce platform policies and data protection on global trade?
Research Question 2:
Is there any significant relationship between user privacy preferences and data protection on global trade?
Research Question 3:
Is there any significant relationship between institutional quality and data protection on global trade?
LITERATURE REVIEW
Overview of Factors Influencing Data Protection on Global Trade
Data problems have become a major worry for international industry, consumers, and bureaucracy as e-
commerce has expanded dramatically in recent years. Concerns about the cross-border movement of personal
data are raised by the amount of digital transactions that expose consumers to risks like cyber-attacks, identity
theft, and illegal access and sharing of user data. Therefore, the effectiveness of the protective data is
dependent on elements that make up the global trade environment when employing the measures that
governments and enterprises implement to improve cybersecurity (International Trade Council, 2023)
This article focuses on three data protection variables and looks at how e-commerce platform policies, user
privacy preferences, and institutional quality relate to each other. Because their security standards differ, e-
commerce sites have different policies even though they are more responsible for establishing data protection
policies. However, consumer privacy regulations about the use of their information are influenced by user
privacy preferences, and some people prefer privacy above security, or vice versa. The quality of institutions
has an impact on the quality of laws and how they are implemented in relation to the data protection standards
that have been established in different regions.
In light of these concerns, this conceptual paper suggests a methodology for examining pertinent variables and
how they affect global data protection. Making better policies, raising consumer awareness, and increasing the
effectiveness of legislation all depend on an understanding of these relationships. Given the existing gaps in
the literature, this study adds to discussions on how to improve digital security in international commerce.
Regulatory Frameworks & Adequacy Decisions
Jurcys, Compagnucci, and Fenwick (2024) propose a user-held data model, utilizing personal data clouds to
minimize cross-border data transfers and compliance risk after GDPR's Schrems II ruling. This model
decentralizes storage, enhancing both legal compliance and end- user autonomy (Jurcys et al., 2024). The EU
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US Data Privacy Framework, adopted in July 2023, reinstated an adequacy decision enabling data flows from
the EU to the US. Yet, European Parliament members and privacy advocates continue challenging its
effectiveness, citing concerns over U.S. surveillance laws and insufficient protections (EU Commission, 2023;
McCabe & Stevis-Gridneff, 2022; Sovereign Digital Rights NGOs, 2023) Wikipedia.
Trade Agreements & Digital Trade Norms
Setting a standard for digital trade arrangements with Asia-Pacific partners, the EU-Singapore Digital Trade
Agreement was signed in July 2024 with the goals of promoting unfettered data flows, e-signatures, consumer
protections, and limitations on code localization (Reuters, 2024). Major regional trade agreements such as the
CPTPP, USMCA, and RCEP have e-commerce chapters that prohibit forced localization and promote
paperless trade (Goldsmith and Gao, 2024). However, obstacles to unified implementation are still created by
regional policy differences, particularly between models supported by the US, China, and the EU (Goldsmith
& Wu, 2006; Gao, 2024).
Data Localization & Trade Disruption
According to econometric evidence presented by Shuzhong, Sishi, and Peng (2024), data policy restrictions
have a considerable negative impact on Chinese cross-border e-commerce exports, particularly for high-tech
and distinctive items. These effects are more pronounced in markets where data policy is more dominant (Ma
et al., 2024). According to Wikipedia, data localizationwhich is frequently motivated by national
sovereignty and surveillance goalsrequires that data be held locally before being transferred internationally.
Although it might safeguard privacy, it raises operating expenses and interferes with cloud economics
(Wikipedia, 2025).
Cybersecurity, Trust & Compliance
Inconsistent encryption standards, an increase in cyberattacks, and sector-specific regulations (such as the
GDPR, China's PIPL, and the U.S. CLOUD Act) pose significant risks and obstacles for multinational
corporations, according to Paganini (2025), who describes the difficulties in complying with cross-border
cybersecurity regulations. According to Chatzigiannis et al. (2023), privacy-enhancing technologies in
financial data sharing, such as encrypted protocols and secure multi-party computation, are essential for
balancing data flows and privacy, particularly in light of growing regulatory restrictions like the FCRA and
GDPR.
Geopolitics & Digital Sovereignty
Beattie (2024) reports middle-income countries (e.g., India, Indonesia, South Africa) pushing to end the WTO
moratorium on digital service tariffs, reflecting geopolitical leverage and signalling a potential shift toward
protectionism (Beattie, 2024). The Cyberspace Administration of China (2024) introduced revised data
export rules that exempt non-sensitive trade data from security reviewsextending certificate validity and
improving clarity—while still enforcing strict oversight of “important datato maintain sovereignty (Reuters,
2024).
Emerging Systems for Cross-Border Compliance
Zhuang et al. (2024) designed CBCMS, a real-time compliance management system that uses a Policy
Definition Language to harmonize diverse legal frameworks, achieving high compliance accuracy (F1 =
97.32%) and low latency (613 ms), marking a breakthrough in cross-jurisdictional data compliance (Zhuang
et al., 2024).
In the past five years, five intersecting factorsregulatory adequacy, digital trade agreements, localization
mandates, cybersecurity, and geopolitical sovereigntyhave shaped the evolving landscape of data protection
in global trade. While technological and policy mechanisms (e.g., CBCMS, personal data clouds) create
pathways to harmonization, sustained progress depends on multilateral alignment, such as through WTO
digital trade negotiations or APEC frameworks.
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E-Commerce Platform Policies
Online marketplaces are increasingly held responsible for data governancenot only for user data handling
but also for compliance with customs and product safety. The European Union’s Digital Services Act (DSA)
and Digital Markets Act (DMA) (enforced 20232024) require platforms (e.g., Amazon, AliExpress, Shein) to
ensure transparency in algorithmic operations, user data use, and to share necessary information with
authorities before goods enter the EU (Cookie-Script, 2025; Wikipedia, 2025). In July 2024, some 80 WTO
members agreed on global e-commerce rules encompassing digital documentation, e-signatures, anti-fraud
protections, spam limits, and personal data safeguardsbut this framework still excludes the U.S. and remains
unratified under WTO law (Reuters, 2024). These developments show how platform policies are becoming
integral to global trade compliance. Implication for data protection: Platform-level mandates enforce stricter
data governance, embedding privacy via design in trade infrastructure. Future research should assess how these
rules affect small vs. large e-commerce firms globally.
User Privacy Preferences
Data policy implementation is increasingly influenced by user opinions. 64% of consumers want personalized
experiences, yet 53% are very concerned about data privacy; only 33% trust businesses to use their data
responsibly, according to a 2025 global poll with over 23,000 respondents (Green, Scutt, & Quaadgras, 2025).
A study by Jha et al. (2024) illustrates the function of consent mechanisms by showing how design affects user
consent behavior. One-click "reject all" banners cause 60% of users to opt out, whereas more intricate
interactions result in up to 90% of users accepting. According to a different study conducted in Malaysia,
Ghana, and the Netherlands (Cetin, 2024), user trust and engagement are greatly impacted by cultural and
regulatory contexts (GDPR in the Netherlands; laxer enforcement in Ghana; and reliance on platform security
in Malaysia), highlighting preferences as a driver of data protection.Implication for global trade: E-commerce
firms must balance personalization benefits with strong consent regimes and transparent privacy design to
build trust across diverse consumer bases. Future work could explore how regional UX preferences intersect
with trade-driven compliance.
Institutional Quality
The effectiveness of data protection measures is significantly impacted by the strength of institutions,
including regulatory clarity, governance quality, and enforcement mechanisms. By establishing a formal
governance framework for interagency data exchange, Malaysia's 2025 Data Sharing Act enhances standards
and accountability (Securiti, 2025). To illustrate how institutional improvements, reinforce privacy
governance, South Korea's PIPC updated its standards in April 2025 to increase transparency in the processing
of personal information. These revisions clarified consent, data usage, and AI-based judgments (Securiti,
2025). There is empirical evidence linking policy implementation capacity to governance quality, as evaluated
by metrics such as the Worldwide Governance Indicators. According to the World Bank (2025), nations with
high scores for rule of law and institutional effectiveness are better equipped to implement cross-border data
agreements. Implications for international trade: Robust institutions promote uniform enforcement of data
privacy laws and cultivate confidence among trading partners. A useful avenue for future research would be to
compare the results of trade compliance with nation-level governance systems (like WGI).
METHODOLOGY
Research Design
This study will employ a mixed-methods approach, combining both quantitative and qualitative techniques to
investigate how different factors influence data protection practices in global trade. Quantitative: To analyses
statistical relationships between variables (e.g., institutional quality and data protection effectiveness).
Qualitative: To explore policy content, user perception, and platform practices in greater depth.
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Data Collection Methods
Quantitative Data
i. Secondary Data Sources by World Bank’s Worldwide Governance Indicators (WGI) for institutional
quality scores. UNCTAD Digital Economy Database for e-commerce trade flows. Freedom House Internet
Freedom Index to measure data privacy and freedom of expression. Platform compliance reports (e.g.,
Amazon, Alibaba transparency reports).
ii. Survey (Primary Data)
The following people will receive an online structured survey: E-commerce users (from three to four countries,
such as Malaysia, the Netherlands, and India). Officers of trade and compliance at multinational corporations.
Survey topics will include: Perceived value of privacy, familiarity with the privacy policies of platforms,
satisfaction with the way data is protected in cross-border transactions. Responses will be scored on a 5-point
Likert scale.
Qualitative Data
i. Policy Analysis using Comparative analysis of major e-commerce regulations and trade agreements (e.g.,
GDPR, CPRA, CPTPP, DSA). Coding of legal documents and platform privacy policies using content analysis
techniques.
ii. Expert Interviews
Semi-structured interviews with Data protection officers, Trade law experts, Policy-makers in digital trade.
Sampling Method
Purposive sampling for expert interviews (policy and compliance specialists). Stratified random sampling for
survey distribution, ensuring demographic and regional representation (developed vs. developing economies).
Sample size: Minimum of 200 survey respondents and 1015 expert interviewees.
Data Analysis Techniques
Quantitative Analysis
Descriptive statistics to summarize survey responses. Correlation and regression analysis to examine
relationships between: Institutional quality and data protection performance, User preference and platform
compliance. Tools: SPSS or STATA.
Qualitative Analysis
Thematic analysis of interview transcripts and policy texts. Use of coding software (e.g., NVivo) to identify
patterns related to enforcement, transparency, and privacy prioritization.
Ethical Considerations
Informed consent will be obtained from all survey participants and interviewees. Data will be anonymized and
securely stored. Ethical clearance will be obtained from the host institution’s research ethics board.
Proposed Theoretical Framework
Thus, from the above- mentioned relationship, the hypothesis for this study can be derived as follows:
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Fig. 1 Proposed Theoretical Framework of Factors Influencing Data Protection on Global Trade
H1: There will be a significant relationship between e-commerce platform policies and data protection on
global trade.
H2: There will be a significant relationship between user privacy preferences and data protection on global
trade.
H3: There will be a significant relationship between institutional quality and data protection on global trade.
DISCUSSION
Therefore, establishing and upholding data protection standards in the framework of global business is one of
the most important effects of e-commerce platform policies. From this, we may infer that the instances of
information leakage are reduced wherever platforms provide strict information protection, including the use of
encryption, multiple forms of identification, and strict access to such information. However, national
differences in the laws governing knowledge-sharing platforms lead to issues with enforcement and disparities
in data protection. As a result, businesses in various regions are subject to various legislation, which can have a
favorable or unfavorable impact on the stability of the organization's data security. This increases the
likelihood of having balanced policies that build a single, replicated model to safeguard client data.
Since consumer behavior and understanding determine how securely user data is kept, data protection also
depends on the user's privacy preferences. This leads us to the conclusion that users who are more privacy
literate tend to have better password habits, share less information, and activate security features, all of which
reduce their vulnerability to online attacks. Convenience-driven consumers, on the other hand, consent to the
default privacy settings or engage with unreliable sources, giving away their data. This indicates that there
should be greater transparency when businesses are collecting data from customers because awareness is still a
major obstacle to ensuring data safety.
The cybersecurity environment and the application of data protection rules are determined by the quality of the
institution. This leads us to conclude that nations with strong laws and effective regulatory controls have lower
rates of identity theft and data breaches because corporations that misuse data face penalties. However, weak
institutions could lack the resources or legal authority to completely adopt reformed data protection, which
leaves them vulnerable to cybercriminals. This suggests that there would be unavoidable hazards to data
protection if institutional breakdowns ever increased. International cooperation is therefore essential to uniform
data protection.
CONCLUSION
Privacy is a growing issue in the context of international business and commerce as the number of digital
transactions rises steadily. E-commerce has experienced tremendous growth in recent years with
corresponding increased risks of fraud such as theft of identity, compromised data and unauthorized disclosure
of information, therefore this paper seeks to establish relevant factors that affect data security. The policies
adopted by e-commerce platforms, the user preferences of privacy, and the institutional quality are thus
discussed as a part of the proposal in this paper. All these factors sum up to define the extent to which
consumer data is protected in cross border digital transactions. A ruling with e-commerce platforms
establishes fundamental guidelines for personal data protection rules that business organizations must follow
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uniformly. However, because users have a role in protecting their information, their effectiveness depends on
their privacy preferences. While some people are worried about their security, others may unintentionally
expose themselves to leaks due to ignorance. Furthermore, since nations with higher legal rights indices were
expected to have greater e-commerce company compliance and responsibility with regard to user data,
institutional quality has a substantial impact on the enforcement of data-created protection legislation. The
effectiveness of data protection in global company is determined by the interdependence of these three
elements.
Thus, by identifying these major factors, this conceptual paper lays theoretical groundwork for the subsequent
quantitative analysis of enhancing data protection in cross-national electronic commerce. Closing the
regulation gaps in online platforms, raising consumers awareness and, strengthening the institutional
crackdown are some of the possible ways to minimize risks associated with the digital trade. Future research
should examine how it is possible to coordinate international effort toward the formation of coherent policies
that will minimize disparities within international regulations regarding data protection.
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