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Mandating portability and interoperability in online social networks: Regulatory and competition law issues in the European Union

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  • Graef, Inge

Abstract

Due to the relatively concentrated nature of the market and the predominance of Facebook, online social networking may be the next digital service facing scrutiny by the European Commission. This article analyzes two potential competition problems in online social networks from a legal perspective. Attention is paid to the extent to which switching costs and network effects give rise to data portability and social network interoperability issues. It is discussed whether competition enforcement or newly devised regulation may serve to resolve these potential competition issues. A comparison is made with the telecommunication sector where similar concerns were addressed by way of regulation imposing obligations of number portability and network interoperability on all market players. Because of this similarity, it is worth considering if any lessons can be drawn from the regulatory approach applied in telecommunications for online social networking. The fact that the portability and interoperability issues in social networks relate to personal data and not ‘merely’ to technology like in the telecommunication sector, leads to additional considerations in the data protection regime. As a result, data protection concerns also have to be taken into account when devising remedies for the online social network industry.

Suggested Citation

  • Graef, Inge, 2015. "Mandating portability and interoperability in online social networks: Regulatory and competition law issues in the European Union," Telecommunications Policy, Elsevier, vol. 39(6), pages 502-514.
    • Handle: RePEc:eee:telpol:v:39:y:2015:i:6:p:502-514
    DOI: 10.1016/j.telpol.2015.04.001
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    References listed on IDEAS

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    1. Peter Cauwels, Didier Sornette, "undated". "Quis pendit ipsa pretia: facebook valuation and diagnostic of a bubble based on nonlinear demographic dynamics," Working Papers ETH-RC-11-007, ETH Zurich, Chair of Systems Design.
    2. E. Glen Weyl, 2010. "A Price Theory of Multi-sided Platforms," American Economic Review, American Economic Association, vol. 100(4), pages 1642-1672, September.
    3. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
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    Cited by:

    1. Lam, Wing Man Wynne & Liu, Xingyi, 2020. "Does data portability facilitate entry?," International Journal of Industrial Organization, Elsevier, vol. 69(C).
    2. Florez Ramos, Esmeralda & Blind, Knut, 2020. "Data portability effects on data-driven innovation of online platforms: Analyzing Spotify," Telecommunications Policy, Elsevier, vol. 44(9).
    3. Engels, Barbara, 2016. "Data portability among online platforms," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 5(2), pages 1-17.
    4. Wellmann, Nicolas, 2019. "Are OTT messaging and mobile telecommunication an interrelated market? An empirical analysis," Telecommunications Policy, Elsevier, vol. 43(9).
    5. Michael Wohlfarth, 2019. "Data Portability on the Internet," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(5), pages 551-574, October.
    6. Wohlfarth, Michael, 2017. "Data Portability on the Internet: An Economic Analysis," 28th European Regional ITS Conference, Passau 2017 169506, International Telecommunications Society (ITS).
    7. Arnold, René & Schneider, Anna & Lennartz, Jonathan, 2020. "Interoperability of interpersonal communications services – A consumer perspective," Telecommunications Policy, Elsevier, vol. 44(3).
    8. Luria, Michal & Nicholas, Gabriel, 2023. "Understanding Innovation in Interoperable Systems: A Podcasting Case Study," OSF Preprints t65mw, Center for Open Science.

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