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Access To Digital Car Data And Competition In Aftermarket Maintenance Services

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  • Bertin Martens
  • Frank Mueller-Langer

Abstract

Before the arrival of digital car data, car manufacturers had already partly foreclosed the maintenance market through franchising contracts with a network of exclusive official dealers. EU regulation endorsed this foreclosure but mandated access to maintenance data for independent service providers to keep competition in these markets. The arrival of digital car data upsets this balance because manufacturers can collect real-time maintenance data on their servers and send messages to drivers. These can be used to price discriminate and increase the market share of official dealers. There are at least four alternative technical gateways that could give independent service providers similar data access options. However, they suffer in various degrees from data portability issues, switching costs and weak network effects, and insufficient economies of scale and scope in data analytics. Multisided third-party consumer media platforms appear to be better placed to overcome these economic hurdles, provided that an operational real-time data portability regime could be established.

Suggested Citation

  • Bertin Martens & Frank Mueller-Langer, 2020. "Access To Digital Car Data And Competition In Aftermarket Maintenance Services," Journal of Competition Law and Economics, Oxford University Press, vol. 16(1), pages 116-141.
    • Handle: RePEc:oup:jcomle:v:16:y:2020:i:1:p:116-141.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhaa005
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    Cited by:

    1. DELBONO Flavio & REGGIANI Carlo & SANDRINI Luca, 2021. "Strategic data sales to competing firms," JRC Working Papers on Digital Economy 2021-05, Joint Research Centre.
    2. Bertin Martens & Bo Zhao, 2020. "Data access and regime competition a case study of car data sharing in China," JRC Working Papers on Digital Economy 2020-08, Joint Research Centre.
    3. Rockett Katharine, 2023. "Is Data the New Gold? Considering Intellectual Property Protection and Regulation of Data," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 17(1), pages 1-15, January.

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