The principle of necessity, as a fundamental principle in personal information protection, limits the unreasonable and excessive processing of personal information by processors to protect the personal dignity, autonomy, and the ability to manage and control the risks of personal information security. However, conflicts between personal information protection and the characteristics of the Internet economy, as well as contradictions between the strict application of the principle of necessity and the needs for a free and open environment for innovation and development in the digital economy, have led to many practical difficulties in the implementation of the principle of necessity. This article starts with the concept positioning, institutional connection, and regulatory relief of the principle of necessity, proposing that the principle of necessity should be flexibly applied to ease the conflict and tension between personal information protection and effective data utilization, to achieve an effective balance between personal rights, corporate interests, and public interests, and promote the healthy development of the digital economy.Key word