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Data portability effects on data-driven innovation of online platforms: Analyzing Spotify
Telecommunications Policy ( IF 5.9 ) Pub Date : 2020-10-01 , DOI: 10.1016/j.telpol.2020.102026
Esmeralda Florez Ramos , Knut Blind

Abstract The EU General Data Protection Regulation (GDPR) introduces a new right to data portability, which allows users to move their personal data to other platforms, potentially affecting competition between rival platforms offering similar (homogeneous/substitute) products or services within the European Union. However, it is still unclear what effects this new regulation could have on competition and, consequently, on innovation in digital markets. Therefore, this paper analyzes the effect of data portability driven by competition on the data-driven innovation response of online platforms such as Spotify, Google, and Facebook. We conduct an empirical analysis of Spotify, which is an online platform facing competition within the EU, and perform a comparison between data portability to number portability of the telecommunication sector to predict the future impact of the new regulation. Finally, we compare the observations on Spotify with Facebook and Google, which are companies in winner-takes-all markets. We argue that online platforms like Spotify, which face competition within the EU, will invest in two forms of data-driven innovation due to the effect of data portability. These types are ‘exploitation-innovation,’ by improving the existing technology, and ‘exploration-innovation’ by developing new technology. In ‘exploitation-innovation,’ firms, like Spotify, will increase investments in data-driven innovation to enhance users' engagement and retention to avoid churn. In ‘exploration-innovation,’ these firms will invest in data-driven innovation to develop new algorithms to include data from customers acquired from their competitors. On the contrary, online platforms, like Facebook or Google, which do not face real competition, will not have a substantial need to invest in data-driven innovation solely due to data portability.

中文翻译:

数据可移植性对在线平台数据驱动创新的影响:分析 Spotify

摘要 欧盟通用数据保护条例 (GDPR) 引入了数据可移植性的新权利,允许用户将他们的个人数据转移到其他平台,这可能会影响欧盟内提供类似(同质/替代)产品或服务的竞争对手平台之间的竞争。 . 然而,目前尚不清楚这项新规定会对竞争产生什么影响,从而对数字市场的创新产生什么影响。因此,本文分析了竞争驱动的数据可移植性对Spotify、谷歌和Facebook等在线平台数据驱动创新响应的影响。我们对 Spotify 进行实证分析,Spotify 是一个面临欧盟内部竞争的在线平台,并在电信部门的数据可携性与号码可携性之间进行比较,以预测新法规对未来的影响。最后,我们将 Spotify 与 Facebook 和谷歌的观察结果进行比较,这两家公司都是赢家通吃市场的公司。我们认为,由于数据可移植性的影响,像 Spotify 这样面临欧盟内部竞争的在线平台将投资于两种形式的数据驱动创新。这些类型是通过改进现有技术的“开发创新”和通过开发新技术的“探索创新”。在“开发创新”方面,Spotify 等公司将增加对数据驱动创新的投资,以提高用户的参与度和保留率,从而避免流失。在“探索-创新”中,'这些公司将投资于数据驱动的创新,以开发新算法,以包括从竞争对手那里获得的客户数据。相反,像 Facebook 或谷歌这样不面临真正竞争的在线平台,不会仅仅因为数据可移植性而对数据驱动的创新进行大量投资。
更新日期:2020-10-01
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