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Sharing data and privacy in the platform economy: the right to data portability and “porting rights”
2019
This chapter analyses the right to data portability and its peculiarities in the platform economy, where this right is fundamental for competition law, users’ protection and privacy, because of the presence of strong direct and indirect network effects and consequent high switching costs. In particular, it analyses the right to data portability as settled out in the GDPR, together with the interpretation given by the Article 29 Working Group, and the other “porting rights” in the Digital Single Market strategy and in the European Commission Proposals “for a Regulation on a framework for the free flow of non-personal data in the European Union”, “for a Regulation on promoting fairness and transparency for business users of online intermediation services” and in the proposed “Directive on certain aspects concerning contracts for the supply of digital content”. It underlines six critical issues related to the right to data portability: 1) a privacy issue, due to the huge sharing of data of other individuals; 2) the need to establish also the portability of non-personal data; 3) the need to establish the portability also for professional users that are not natural person; 4) the need to protect the rights of the controller and his investment when the data are not merely collected but also reworked; 5) the risk of decreased competition with a strong and non-scalable regulation; 6) the necessity to pay attention at the technical solutions available in order to assure practicable application methods, in particular considering the needs of smaller operators.
The right to data portability and user control: ambitions and limitations
This article covers the right to data portability and analyzes its incidence in relation to the policy objectives set out by the EU regulator. Art. 20 of Regulation (EU) 679/2016 (" GDPR ") establishes a general-purpose control mechanism of horizontal application to facilitate the sharing and re-use of personal data among data subjects and promote the free flow of personal data within the European Union. As a key enabler of user control, the right to data portability aims to transform passive subjects into active data re-users. This objective presents an opportunity to develop a user-centric digital environment, by mandating easy retrieval of personal datasets and automatic transfers between digital providers. Nonetheless, the overview of the provision's elements proves that the right applies in a reduced range of situations, suffers several limitations and raises pivotal concerns for data security, undermining the creation of a safe and trustworthy data-driven environment. Consequently, this article questions the significance of the right's reach and the intensity of the alleged user control, whose beneficial impacts largely depend on the extent to which individuals will exercise the right in practice.
Some Economic Characteristics of Internet Platforms
DANUBE
Various internet platforms have rapidly developed into central points of everyday life, for private individuals as well as for companies (often dominated by a single or a few companies). At the same time these internet platforms are advancing into more and more areas of business. This creates the risk of dependency, abuse of power, manipulation, concentration of power, centralization of data and information with corresponding effects on technological development, innovation, economy, society and politics. From an economic point of view, this article examines how the strong market positions of internet platforms arise and can be maintained. The dynamics of these technology and innovation-driven markets and the differences from conventional markets are also discussed. These internet markets have emerged from a series of innovations and are characterized by rapid technological development. Taking into account the economic peculiarities as well as knowledge from innovation and governanc...
Management Science, 2010
We develop and test a model of migration and use of platforms (MOMnUP) to explain consumers' reactions to the newest generation of an information and communication technology platform. We draw from information systems and consumer behavior research on adoption and use of technologies, and adapt and incorporate the construct of complementarity from the macro-level research on platform leadership, network effects, and innovation ecosystems. We conceptualize complementarities between the hardware and software platforms, software platform and applications, and applications and services. The complementarities are theorized to influence migration intention, with current generation of the consumer's platform being a key moderator. We empirically validated our model with data collected using two waves of surveys from 4,412 consumers (2,333 consumers in the second wave) before and after the introduction of the 3 rd generation (3G) mobile data services platform in Hong Kong. We explained 60% of the variance in migration intention that in turn was strongly correlated with migration to and use of 3G.
Strategic Management Journal
Due to network effects and switching costs in platform markets, entrants generally must offer revolutionary functionality. We explore a second entry path that does not rely upon Schumpeterian innovation: platform envelopment. Through envelopment, a provider in one platform market can enter another platform market, combining its own functionality with the target’s in a multi-platform bundle that leverages shared user relationships. We build upon the traditional view of bundling for economies of scope and price discrimination and extend this view to include the strategic management of a firm's user network. Envelopers capture share by foreclosing an incumbent’s access to users; in doing so, they harness the network effects that previously had protected the incumbent. We present a typology of envelopment attacks based on whether platform pairs are complements, weak substitutes or functionally unrelated, and we analyze conditions under which these attack types are likely to succeed.
Transforming Competitiveness by Introducing Digital Platforms
Journal of World Economy: Transformations & Transitions, 2021
The purpose of the proposed paper is to study the specific factors shaping the benefits of information platforms as an innovative institutional form and model of doing business. Active dissemination of the business model of online platforms radically transforms the competitive landscape of the market environment. The task of determining the sources and mechanisms for studying the changes that are taking place is being updated. New areas of competition include competition between hierarchical and network structures, between global «structuring» platforms, competition in dominant platform ecosystems, the interaction between platforms operating in competitive markets, competition between organizers and users, and between platform users. The impact of platforming on cross-industry, regional and international competition is determined. The sources of competitive advantages of platforms are investigated. These include reliance on data as the main factor of production, changing the cost st...