Data sharing and competition – DASHCOMP

Recent advancements in AI-driven technologies have transformed digital markets, positioning data as a central input for their operation and granting data holders a significant competitive advantage. The European Commission estimates the value of the data economy in the EU will reach €829 billion by 2025. While increased data availability enhances market efficiency, it also raises concerns regarding privacy, market contestability, and barriers to entry. In response, competition authorities have implemented regulations, such as the Digital Markets Act (DMA) and the EU Data Act, aimed at promoting market contestability through data-sharing obligations for large digital platforms. Yet, these regulations often overlook the competition dynamics in adjacent data-connected markets, where incumbents leverage cross-market data-driven network effects to reinforce their positions. The DASHCOMP project seeks to investigate the competitive implications of data-sharing obligations in these markets by: (i) examining firms' incentives to share data in the context of cross-market competition, (ii) analyzing the implications for mergers influenced by cross-market data network effects, and (iii) exploring how platforms strategically organize data sharing to shape competition. By focusing on these aspects and incorporating the interaction between different types of data usage and learning mechanisms, DASHCOMP aims to provide valuable insights for competition authorities, ensuring effective regulatory frameworks in an increasingly data-driven economy.