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Antitrust and Restrictions on Privacy in the Digital Economy

Author

Listed:
  • Nicholas Economides

    (Professor of Economics, NYU Stern School of Business, New York, New York 10012)

  • Ioannis Lianos

    (President, Hellenic Competition Commission and Professor of Global Competition Law and Public Policy, Faculty of Laws, University College London)

Abstract
We present a model of a market failure based on a requirement provision by digital platforms in the acquisition of personal information from users of other products/services. We establish the economic harm from the market failure and the requirement using traditional antitrust methodology. Eliminating the requirement and the market failure by creating a functioning market for the sale of personal information would create a functioning market for personal information that would benefit users. Even though market harm is established under the assumption that consumers are perfectly informed about the value of their privacy, we show that when users are not well informed, there can be additional harms to this market failure.

Suggested Citation

  • Nicholas Economides & Ioannis Lianos, 2020. "Antitrust and Restrictions on Privacy in the Digital Economy," Working Papers 20-03, NET Institute.
    • Handle: RePEc:net:wpaper:2003
    as

    Download full text from publisher

    File URL: http://www.netinst.org/Economides_20-03.pdf
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    Citations

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    Cited by:

    1. Kuerbis, Brenden & Mueller, Milton, 2023. "Exploring the role of data enclosure in the digital political economy," Telecommunications Policy, Elsevier, vol. 47(8).
    2. Bustillo, René, 2021. "Analysis of competition policies in five countries of Latin America and the Caribbean and the post-pandemic recovery period," Documentos de Proyectos 46738, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. -, 2021. "Digital technologies for a new future," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 46817, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item

    Keywords

    personal information; Internet search; Google; Facebook; digital; privacy; restrictions of competition; exploitation; market failure; hold up; merger; abuse of a dominant position; unfair commercial practices; excessive data extraction; self-determination; behavioral manipulation; remedies; portability; opt-out.;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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