
EU Competition Law, Data Protection and Online Platforms: Data as Essential Facility
Description
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The question arises whether the denial of a dominant firm to grant competitors access to its data could constitute a 'refusal to deal' and lead to competition law liability under the so-called 'essential facilities doctrine', according to which firms need access to shared knowledge in order to be able to compete. A possible duty to share data with rivals also brings to the forefront the interaction of competition law with data protection legislation considering that the required information may include personal data of individuals. Building on the refusal to deal concept, and using a multidisciplinary approach, the analysis covers such issues and topics as the following:
- data portability;
- interoperability;
- data as a competitive advantage or entry barrier in digital markets;
- market definition and dominance with respect to data;
- disruptive versus sustaining innovation;
- role of intellectual property regimes;
- economic trade-off in essential facilities cases;
- relationship of competition enforcement with data protection law and
- data-related competition concerns in merger cases.
The author draws on a wealth of relevant material, including EU and US decision-making practice, case law, and policy documents, as well as economic and empirical literature on the link between competition and innovation. The book concludes with a proposed framework for the application of the essential facilities doctrine to potential forms of abuse of dominance relating to data. In addition, it makes suggestions as to how data protection interests can be integrated into competition policy.
An invaluable contribution to ongoing academic and policy discussions about how data-related competition concerns should be addressed under competition law, the analysis clearly demonstrates how existing competition tools for market definition and assessment of dominance can be applied to online platforms. It will be of immeasurable value to the many jurists, business persons, and academics concerned with this very timely subject.
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Content
- Intro
- Acknowledgements
- CHAPTER 1Introduction
- 1.1 Background
- 1.2 Focus of the Book
- 1.3 Structure and Methodology
- PART ICompetition and Innovation on Online Platforms
- CHAPTER 2Business Models and Economic Characteristics of Online Platforms
- 2.1 Introduction
- 2.2 Describing the Online Intermediary Environment
- 2.2.1 Search Engines
- 2.2.2 Social Networks
- 2.2.3 E-commerce Platforms
- 2.3 Multi-sided Businesses
- 2.3.1 Multi-sidedness in General
- 2.3.2 Establishing a Multi-sided Business
- 2.3.3 Multi-sided Nature of Online Platforms
- 2.4 Network Economy Characteristics of Online Platforms
- 2.4.1 Economies of Scale
- 2.4.2 Network Effects
- 2.4.3 Switching Costs and Lock-In
- 2.4.4 Barriers to Entry
- 2.5 Conclusion
- CHAPTER 3Evaluating the Link Between Competition and Innovation
- 3.1 Introduction
- 3.2 Measuring Competition and Innovation
- 3.2.1 Indicators of Competition
- 3.2.2 Indicators of Innovation
- 3.2.3 Reliability of the Indicators
- 3.3 Economic Theory and Empirical Evidence on the Relationship Between Competition and Innovation
- 3.3.1 Schumpeter
- 3.3.2 Arrow
- 3.3.3 Aghion
- 3.3.4 Appraisal
- 3.4 Different Types of Innovation
- 3.4.1 Disruptive versus Sustaining Innovation
- 3.4.2 Appraisal
- 3.5 Conclusion
- CHAPTER 4Market Definition and Dominance on Online Platforms
- 4.1 Introduction
- 4.2 Market Definition of Multi-sided Businesse
- 4.2.1 An Approach for Market Definition of Multi-sided Platforms
- 4.2.2 Relevant Product Market for the User Side
- 4.2.3 Relevant Product Market for the Advertiser Side
- 4.2.4 Relevant Geographic Market for Online Platforms
- 4.2.5 Economic Tools for Market Definition on Multi-sided Platforms
- 4.3 Market Definition in New Economy Industries
- 4.3.1 US Initiative Towards a Framework for Innovation in Competition Analysis
- 4.3.2 EU Approach Towards Innovation in Competition Enforcement
- 4.4 Assessing Dominance on Online Platforms
- 4.4.1 Room for Competition in Markets in Which Multi-sided Businesses Operate
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