The case, explained

GDPR as a Tool for Unfair Competition: Professional Standing in Privacy Litigation

6 min read · Updated October 2026 · Editorial oversight: Avv. Federico Papa

Data protection is no longer confined to individual rights or administrative enforcement; it has become a new frontier of civil and commercial law. A significant development on October 4, 2024, established the principle that GDPR violations can be directly challenged by competitors as acts of unfair competition, opening novel avenues for market protection. According to Il Sole 24 Ore, the application of this principle within Italian domestic law remains at an early stage, lacking substantive judgments following the decision of the Court of Justice. In this article, we analyze how non-compliance with data protection obligations can generate an unlawful economic advantage, enabling a business to bring legal action against a competitor for injunctive relief and damages. Through the twin case of Gaio Sventura, we examine how this judicial interpretation turns the GDPR into a mechanism for regulating inter-enterprise relations, offering professionals new tools to counter unfair practices by rivals.

GDPR as a Tool for Unfair Competition: Professional Standing in Privacy Litigation

In brief

The article examines the classification of GDPR violations as acts of unfair competition between economic operators. Building upon CJEU jurisprudence, it analyzes the standing of competitors to bring civil claims against entities gaining an unfair advantage by skimping on compliance costs, highlighting that national case law remains in its infancy and devoid of post-ruling merit decisions.

  1. The facts

    The case marking this pivotal shift involves an online pharmacy operating on a major global e-commerce platform. According to Guida al Diritto, a competitor sued the rival business, alleging that it sold medicinal products without properly collecting explicit consent for processing customers' health data. The plaintiff was not acting to protect consumer privacy, but rather to challenge an act of unfair competition.

    The plaintiff argued that by circumventing the complex technical and disclosure requirements under the GDPR, the rival pharmacy achieved a streamlined and less costly purchasing process, thereby distorting market competition. The dispute, initially brought before German courts, reached the Court of Justice of the European Union to determine whether the GDPR constitutes an exhaustive system of remedies or permits civil claims by third-party competitors. The procedural stage culminated in a preliminary ruling by the Court of Justice affirming the compatibility of such civil actions with EU law.

  2. The applicable legal framework intersects national civil law and European regulations.

    1. Article 2598, point 3, of the Italian Civil Code governs the general clause of unfair competition, prohibiting the use of means inconsistent with professional fairness and capable of harming another's business.
    2. EU Regulation 2016/679 (GDPR) sets forth data protection duties, the breach of which is here characterized as a violation of public law rules aimed at cost savings.
    3. Article 2600 of the Civil Code governs civil remedies, providing for injunctive relief and damages upon proof of the competitive tort.
  3. Case law orientation

    Supranational jurisprudence has clarified that the GDPR does not exhaust the remedies available in cases of unlawful processing. The European Court ruled that the GDPR does not preclude national legislation from granting competitors standing to sue entities violating privacy rules. It was noted that competitor enforcement reinforces the overall effectiveness of European law, safeguarding the effet utile of the Regulation.

    At the domestic level, lower court jurisprudence has consistently held that non-compliance with administrative or safety regulations, where it yields cost savings for the infringer, constitutes unfair competition via violation of public law rules. However, settled case law requires that the infringed rule directly affects the exercise of economic activity or that its non-observance alters fair competition among market players.

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  5. What it teaches professionals

    1. Privacy compliance must also be viewed as a defense strategy in civil litigation with competitors, rather than solely a risk management measure against administrative fines.
    2. Undertakings can leverage unfair competition actions to challenge irregular practices by competitors operating in the digital market through unlawful procedural shortcuts.
    3. Establishing the competitive advantage gained from compliance cost savings is the central evidentiary prerequisite for a successful damages claim.
    4. Strategic coordination between complaints before the Data Protection Authority and proceedings before civil courts is recommended to maximize the effectiveness of legal remedies.

References: Art. 2598 c.c.Regolamento UE 2016/679Art. 2600 c.c.

Avv. Federico Papa
Editorial oversight: Avv. Federico Papa·ICAMContent drafted with AI support and subject to editorial source checks. Despite these controls, inaccuracies may remain: reports and rectification requests are welcome. Report a correction

Frequently asked questions

Can a professional be sued by a competitor for failing to maintain a record of processing activities?

Yes, if such an omission results in cost savings capable of distorting fair competition, the competitor has standing to initiate civil proceedings for unfair competition, without prejudice to reporting the infringement to the Data Protection Authority.

What civil remedies are available for GDPR violations in competitive market relationships?

In addition to an injunction restraining unlawful conduct and a coercive penalty, the court may order compensation for damages and the publication of the judgment in national newspapers at the defeated party's expense.

Is it possible to bring a civil court action before the Privacy Authority has issued a ruling?

Yes, a civil action for unfair competition is fully independent of administrative proceedings before the supervisory authority, as explicitly confirmed by the Court of Justice of the European Union.

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