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Big data: Bringing competition policy to the digital era – GAWER – November 2016 OECD discussion

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This presentation by Annabelle Gawer from the University of Surrey was made during the discussion on "Big Data: Bringing competition policy to the digital era" held during the 126th meeting of the OECD Competition Committee on 29 November 2016. More papers and presentations on the topic can be found out at www.oecd.org/daf/competition/big-data-bringing-competition-policy-to-the-digital-era.htm

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Big data: Bringing competition policy to the digital era – GAWER – November 2016 OECD discussion

  1. 1. Bringing Competition Policy in the Digital Age Understanding Digital Platforms Prof. Annabelle Gawer OECD Hearing on Big Data, 29 Nov 2016, Paris
  2. 2. Introduction Platform Fundamentals: How Platforms create value What is Different about Data-Enabled Econ Activities: Consumers generate data Recommendation: Reduce market distortions at the global level Agenda 2 © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
  3. 3. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution Some of my publications on digital platforms 3
  4. 4. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution 5 Platforms Examples
  5. 5. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution 5
  6. 6. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution Platforms: From INSIDE to OUTSIDE the Firm
  7. 7. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution Platform Technologies 7 Innovation platforms are technologies that facilitate the development of complementary innovation in innovation ecosystems • Re-Use: Economies of scope in innovation • Connect: Sharing IP and tools to connect (APIs) => Reducing barriers to entry for complementors in complementary innovation • Be a Magnet: Reduced search cost of complementary innovators
  8. 8. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution Platform Economics Platform Business Models for computer-mediated transactions 8
  9. 9. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution Dating Bars Amazon market- place Transactional Air BnB UBER Google ARM Intel micro- processor The platform serves as an intermediary for direct exchange or transactions, subject to network effects Innovation The platform serves as a technological foundation on top of which other firms develop complementary innovations Facebook for Developers Apple iOS Apple App Store Google Android Facebook SAP NetWeaver Innovation Platforms Transaction Platforms Match.com Google Play Apple AUTOSAR Qualcomm PLATFORMS
  10. 10. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution 10 ServiceData Consumes Produces Improves experience One data set and common semantic Users generate data as they consume data 15 User
  11. 11. Platform Fundamentals: How Platforms create value •Economics & Design •Transaction & Innovation •Network Effects, Market Power, Barriers to Entry: Debunking myths What is Different about Data-Enabled Econ Activities: Consumers generate data •Consumers are not just consumers: also producers, and co-innovators •Different roles of Data: Input, Process technology, Output, Expression of free Speech Recommendation: Reduce market distortions at the global level •Difficult trade-offs along multiple non-commensurate dimensions, role for public-interest bodies •Don't re-invent Antitrust, but Antitrust is Silo-ed: Link it up with other protection agencies •Global regulator of Data and a Global Competition Authority Summary 11 © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
  12. 12. Thank you! a.gawer@surrey.ac.uk

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