Firms compete by offering consumers lower prices but also high-quality products, and a wide range of choices. With the increasing commercialization of personal data, there is a growing consensus that the level of privacy protection and deployment of Privacy Enhancing Technologies (PETs) could be subject to competition, as an element of quality, choice or innovation. A case in point is the recognition by the European Commission that data privacy constitutes a key parameter of non-price (quality) competition in markets for consumer communications and professional social networks. This development signifies that market power may be exerted by reducing the level of data privacy and foreclosing competition on PETs deployment. Despite this, how market power affects competition on privacy and PETs remains unclear. This is partially because microeconomic theory offers little help in predicting how market power or lack thereof affects quality (including choice and innovation). The aim of this article is to examine how market power in the underlying services that generate data impacts competition in data privacy and whether the proxies for assessing market power in these underlying services cater to data privacy interests. To this end, first, the article begins by highlighting some emerging but inconclusive literature shedding some light on the link between market structure and competition in data privacy. Secondly, the article identifies and discusses the structural and behavioural considerations that might hinder effective competition through data privacy and PETs. Finally, it examines the role that competition law can play in promoting and maintaining such competition.
There is a clear trend of a hardening attitude towards digital platforms. In Australia this trend is exemplified by the Australian Competition and Consumer Commission’s current inquiry specifically into digital platforms. Further, it can also be seen in court decisions. Having discussed one such court decision, we give a brief overview of the Australian Competition and Consumer Commission’s digital platforms inquiry. We then seek to bring attention to a selection of particularly relevant European developments that may usefully inform how Australia proceeds in this arena and that may be considered in the Australian Competition and Consumer Commission’s final report due to be provided to the Treasurer on 3 June 2019.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.