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Access to Data: Not the Barrier It’s Thought to Be

TL;DR Data doesn’t create a barrier to entry, but privacy regulations might.

Data doesn’t create a barrier to entry, but privacy regulations might. 

The Debate…

Some fear that incumbents’ access to user data gives them the ability to improve and target their products in ways that new entrants cannot replicate, creating a barrier to entry that holds back competition in ways that are harmful to consumers.

But…

While access to data may confer some advantages on incumbents, they are not insurmountable by others, and they are akin to other benefits like reputation that are not considered to be barriers to entry.

Download the tl;dr explainer PDF here

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Antitrust & Consumer Protection

ICLE Submission to Digital Advertising Services Inquiry

Regulatory Comments The purpose of this submission is to highlight some of the findings of the relevant scholarship to help to inform the ACCC’s work, and to highlight some of the problems that may arise during the course of the study, given the misconceptions about competition between advertising-funded digital platforms that are common in the media and popular debate today.

The International Center for Law and Economics (ICLE) welcomes the opportunity to make a submission to the Australian Competition and Consumer Commission’s (ACCC) Digital Advertising Services Inquiry. As a nonprofit, nonpartisan research center, ICLE works with academics around the world to promote scholarship into the intersection of law and economics.

The purpose of this submission is to highlight some of the findings of the relevant scholarship to help to inform the ACCC’s work, and to highlight some of the problems that may arise during the course of the study, given the misconceptions about competition between advertising-funded digital platforms that are common in the media and popular debate today.

This submission will focus on three areas raised by the Issues Paper: concentration of market power in digital advertising, unequal access to data acting as a potentially anti-competitive barrier to entry, and the effect of vertical integration on competition and innovation.

Click here to read the submission.

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Antitrust & Consumer Protection