Data have become a vital asset in digital markets, driving both competitive dynamics and innovation.
In response, recent EU measures such as the Digital Markets Act (DMA) and the Data Act aim to level the playing field between platforms and their users by requiring access to user and transaction data. Notably, DMA Article 6(10) mandates real-time, continuous, and high-quality access, ensuring transparency and facilitating fair competition. Yet mandated access can generate unintended effects.
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Data-sharing mandates may raise compliance costs and platform fees, reducing pro-competitive benefits.
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Only certain firms can fully use shared data, potentially increasing concentration and reducing competition.
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If no alternative data sources exist, sellers may become dependent on dominant platforms for essential information.
In his article, “The data-sharing paradox: Unintended consequences of mandated data-sharing policies,” published in Concurrences, CRA’s Federico Navarra explores the associated risks and discusses potential remedies of mandated data-sharing regulations to ensure that such policies genuinely foster contestability and innovation, rather than unintentionally strengthening the dominance of major platforms.