This document discusses data portability, interoperability, and competition. It notes potential benefits like addressing durable market power, reducing switching costs, and enabling new entrants. However, it also outlines limitations such as providing little value if data scope is limited or network effects are not addressed. Data portability works best in markets where individual data is valuable, incumbents control data without major investments, some competition exists, and privacy is not a major limiting factor. Interoperability can promote competition but also risks entrenching existing business models or granting influence to incumbents. It works best in markets that are not rapidly evolving and focuses on specific dominant firms with oversight. The document also discusses how these issues relate to enforcement of abuse
Data Portability and Interoperability – OECD COMPETION DIVISION – June 2021 OECD discussion
1. Presentation by the Secretariat
Data portability, interoperability
and competition
1
James.MANCINI@oecd.org
2. Data portability and competition
2
Potential benefits
• Address data as a source of
durable market power
• Reduce switching costs and
lock-in
• Enable multi-homing
• User-initiated
• Drive competition on data
analysis vs. collection
• Enable comparison services
Limitations and risks
• Little value to entrants if scope
or frequency of data is limited,
or if multi-user datasets are
needed
• Does not address most
network effects
• Risks regarding transparency
• Potential frictions in process
• May unintentionally harm new
entrants
So data portability is best focused on markets in which:
• Individual-level data is valuable and can be clearly-defined
• Incumbents hold data without significant investments
• Some competition is already present
• Scope is not seriously limited due to privacy or other
limitations
3. Interoperability and competition
3
Potential benefits
• Promote competition either
among platforms or within
platforms (unbundling)
• Enable continuous data
portability
• Reduce user lock-in
• Enable multi-homing and
mixing and matching
• User-initiated
• Enable entry in
downstream/related markets
Limitations and risks
• Could entrench existing
technologies or business
models
• May grant additional influence
to incumbents
• Might disincentivise
innovation
• Could enable collusion
• May not have an impact if
behavioural biases are
unaddressed
• Security risks
So interoperability measures are best:
• Tailored to markets that are not rapidly evolving
• Focused on specific dominant firms
• Subject to implementation oversight
4. Portability and interoperability in enforcement
4
Abuse cases
Theories of harm
• Degradation of interoperability
o Bundling
o Exclusivity
o Input foreclosure
o Exploitative abuse
• Degradation of portability
o Margin squeeze
o Bundle discount
o Input foreclosure
Remedies
Merger cases
Theories of harm
• Vertical integration and
interoperability risks
• Vertical integration and data
access
• Conglomerate mergers with
overlapping user bases
• Horizontal effects
Remedies
Collusion
Collusion to limit interoperability/portability
Risks from interoperability initiatives
5. Portability and interoperability in regulation
and advocacy
5
Sector regulation
• Banking (e.g. Open
Banking, PSD2)
• Utilities
• Digital sector
proposals
Horizontal
regulation
• Data protection
(e.g. GDPR)
• Consumer
protection
• Encouraging data-
sharing to
encourage
productivity
Advocacy
• Advocating for
regulatory
measures
• Market
investigation tools