In the global regulatory landscape, the European approach to data regulation stands out. The European Union sees itself as a pioneer and role model for data protection in an increasingly data-driven digital world. The General Data Protection Regulation (GDPR), in particular, is regarded as a blueprint for other jurisdictions around the globe and is frequently hailed as a European success story by policymakers. At the same time, European policymakers have recognized the economic value of data and data-driven innovation, which call for data availability and the free flow of data. This chapter highlights that these diverse policy goals involve inherent trade-offs and tensions. The political compromises and alternative regulatory approaches to balance these tensions are evident throughout the recent European data regulations. While navigating these trade-offs through proper rulemaking is challenging, implementing and enforcing these regulations poses an even greater challenge in a global digital economy. This chapter argues that it is important to consider these global dimensions when assessing the requirements and consequences of an effective European regulatory framework for data and privacy. Firstly, a global digital marketplace offers firms ample opportunities for regulatory arbitrage and rule evasion. Secondly, regulation can significantly alter firms’ access to data, their freedom and ability to process this data, and the costs involved in data-driven value creation. In a global digital economy, this can lead to imbalances and an uneven playing field for competition, disadvantaging domestic firms and risking losses in innovation and competitiveness. In the worst case, this could also undermine data protection objectives, if European consumers turn to mostly using data-intensive digital services of providers from outside the European Union, while regulators remain unable to fully and effectively enforce European data protection standards on a global scale.