![]() In markets characterized by network effects, one product or standard tends towards dominance, because the utility that a user derives from consumption of the good increases with the number of other agents consuming the good. Circuit explored the antitrust implications of network effects in its seminal opinion in United States v. AMAZON UK ANTITRUST SCRUTINY ON DATA SOFTWARErang from smaller firms in retail and advertising to large corporations in entertainment, software and social media,” seeking information “about their own businesses” as well as how top “tech companies may have engaged in anticompetitive behavior.”Ĭhopra explained that one of the core concerns driving antitrust enforcers’ scrutiny of aggregated user data was with “network effects”-simply put, the fact that “it is clunky for to check many different apps, their best bet is to use the platform that everyone else is using.” As users are “lured to the platform, this attract more” users, which makes the platform’s aggregated user data more valuable to advertisers and others. House of Representatives recently sent letters to “more than 80 companies. Chopra concluded that it would be desirable for the FTC to use its authority under Section 6 of the FTC Act to “conduct industrywide investigations and studies and mak its findings available to the public,” to ensure the FTC is operating on “deep knowledge and expertise of a particular market.” Ĭonsistent with such a broadening of government antitrust scrutiny, the New York Times reported that the U.S. ![]() In prepared remarks for an Octohearing before the House Subcommittee on Antitrust, Commercial, and Administrative Law, FTC Commissioner Rohit Chopra stated that firms “desperate for data” include “not just the Big Tech companies,” but also “telecommunications companies,” listing several firms, and “the automotive industry,” which already is the subject of another DOJ antitrust probe. As federal and state antitrust enforcers ramp up their investigations into the technology sector and the legal implications of its use of aggregated customer data, recent developments suggest enforcers may be broadening their data-related scrutiny beyond top technology companies to other industries. ![]()
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