Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/217207
Authors: 
Budzinski, Oliver
Gruésevaja, Marina
Noskova, Victoriia
Year of Publication: 
2020
Series/Report no.: 
Ilmenau Economics Discussion Papers 139
Abstract: 
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.
Subjects: 
data economics
big data
economics of privacy
competition
Facebook case
paying-with-data
abuse of dominance
market power
digital economy
JEL: 
K21
L41
L86
L12
M21
L14
K42
Document Type: 
Working Paper

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