Data Sharing for Contestability in Data-Driven Digital Markets: An Analysis

Abstract

This research paper explores the unique features of data-driven digital markets and investigates the feasibility of implementing a mandatory data-sharing regime for dominant entities. The context of the study arises from the recognition that competition in digital markets operates differently from traditional markets, prompting global efforts to regulate these markets and promote competition and consumer welfare. This paper employs a policy analysis methodology, examining expert reports on data-sharing strategies from the UK and the EU. Additionally, it analyses recent amendments to the Competition Act, 2002, and relevant reports and discussions within India’s antitrust regulation framework. The paper identifies that data enables competition within these markets and recommends a mandatory data-sharing regime that optimises competing considerations, such as fairness to incumbents and maximising data efficiencies. Such a data-sharing regime would ensure that entrants in the digital market are not disadvantaged and can leverage their innovation to pose a genuine competitive threat. The paper also explores alternative approaches to promoting competition, concluding that data sharing is the most efficient solution.