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Data access and regime competition a case study of car data sharing in China

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Abstract

We study the case of a Chinese industrial policy, implemented in Shanghai, that makes it mandator for car manufacturers to share electro-mechanical performance and real time navigation data from their entire fleet of electric and hybrid vehicles with local and central government authorities. This policy seeks to reduce emissions, assess the performance of New Energy Vehicles (NEVs), prevent fraud in state subsidies and strengthen the competitiveness of Chinese manufacturers of these vehicles. We argue that economies of scope in data aggregation may provide traditional market failure arguments for government intervention and mandatory data pooling. Our paper also illustrates how data access regulation could be used for economic regime competition. The EU and China pursue very similar data policy goals that hinge on economies of scope in data aggregation. However, they follow very different political processes to achieve these goals.

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  • 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.
    • Handle: RePEc:ipt:decwpa:202008
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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    2. Bertin Martens & Alexandre de Streel & Inge Graef & Thomas Tombal & Nestor Duch-Brown, 2020. "Business-to-Business data sharing: An economic and legal analysis," JRC Working Papers on Digital Economy 2020-05, Joint Research Centre.
    3. 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.
    4. Oliver Budzinski, 2008. "The Governance of Global Competition," Books, Edward Elgar Publishing, number 12951.
    5. Bertin Martens & Frank Mueller-Langer, 2018. "Access to digital car data and competition in aftersales services," JRC Working Papers on Digital Economy 2018-06, Joint Research Centre.
    6. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    7. Rosen, Sherwin, 1983. "Specialization and Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 43-49, January.
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    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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