Data Exploiting As an Abuse of Dominance: The German Facebook Decision

Höppner, Thomas

doi:10.2139/ssrn.3345575

Cited by 1 publication

(1 citation statement)

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“…Some articles use Facebook case as an example to illustrate general concerns in datadriven markets (Botta & Wiedemann 2018;Lancieri 2019;Kathuria 2019). In articles by Becher (2019), Podszun (2019), and Staube (2019) the main issues of FCO decision are discussed after its publication, about selected statements in preliminary assessments provided by FCO see inter alia in articles by Hoppner (2018), Massolo (2018), and Volmar & Helmdach (2018).…”

Section: The Facebook Casementioning

confidence: 99%

The Economics of the German Investigation of Facebook’s Data Collection

2020

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The importance of digital platforms and related data-driven business models is ever increasing and poses challenges for the workability of competition in the respective markets (tendencies towards dominant platforms, paying-with-data instead of traditional money, privacy concerns, etc.). Due to such challenges, investigations of such markets are of high interest. One of recent cases is the investigation of Facebook's data collection practices by German competition authorities. Our paper, in contrast to the wide stream of legal studies on this case, aims to analyze whether Facebook's practices regarding data collection could constitute an abuse of market power from an economic perspective, more specifically against the background of modern data economics. In doing so we summarize the state of the advanced theories, including influences from behavioral economics, addressing such markets, and discuss four potential theories of harm.

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