The Myth of Data Monopoly: Why Antitrust Concerns About Data Are Overblown
Recently, a number of legal experts and policy activists have called on antitrust regulators to incorporate the possession of data into their analyses of mergers and possible anticompetitive practices. These observers fear that control of large amounts of data will give companies an unfair advantage over competitors, allowing them to use their market power to harm consumers and competitors. These claims are incorrect.
Data-rich companies are not an economic threat, but rather an important source of innovation, which policymakers should encourage, not limit. And because the use of data is non-rivalrous, one company’s possession of data does not come at the expense of another’s. As such, there is no need to impose additional antitrust scrutiny merely because a company relies on data to conduct business. Moreover, regulators already have sufficient powers to deal with any actual behavioral problems that may arise.