While digital platforms become more and more important for the whole society as well as the economy, regulatory reactions are also discussed and implemented.
Theories of Harm Because of Data
Institut der deutschen Wirtschaft (IW)
While digital platforms become more and more important for the whole society as well as the economy, regulatory reactions are also discussed and implemented.
Against this backdrop, the role of data and theories of harm based on data power are discussed. A concentration of data can harm competition because (i) markets are foreclosed, (ii) a relative foreclosure exists due to better capabilities of platforms to make use of data, (iii) of access to important data and information, and (iv) of the loss of (potential) competition. The analysis is further complicated by the setup of whole ecosystems by big platforms. A close look at affected markets does not reveal every possible misconduct, while excessive interventions harm innovation and competition. As an example, the recent ban of anti-steering is discussed and yields ambivalent results if data is considered.
Theories of Harm Because of Data
Institut der deutschen Wirtschaft (IW)
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