Data, Privacy, and Competition: Theories of Harm and Data Mobility

The dynamics of competition in data-powered ecosystems are motivated by user-related network effects and centered around users. Incumbent platforms thus have incentives to build strategies to protect their market, aimed at shielding their user base from contestability by rivals. This includes users from related markets, which may serve as an entry point to the core market of the ecosystem, especially when related markets are data rich. Fostering contestability in ecosystems protected by data-driven network effects and switching costs is intrinsically linked to data portability and interoperability. In implementing such measures, there is scope to learn from past experience in financial services, as incumbents may have incentives to compromise the effectiveness of data mobility regulations.

By Ana Sofia Rodrigues & Rafael Longo¹

I. INTRODUCTION

The dynamics of competition in data-powered ecosystems are motivated by user-related network effects and centered around users.

Incumbent platforms thus have incentives to build strategies to protect their market, aimed at shielding their user base from contestability by rivals. This includes users from related markets, which may serve as an entry point to the core market of the ecosystem, especially when related markets are data rich.

Fostering contestability in ecosystems protected by data-driven network effects and switching costs is intrinsically linked to data portability and interoperability. In implementing suc