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The law and economics of the data economy: introduction to the special issue

Author: Eger, Thomas,Scheufen, Marc
Publisher: New York, NY: Springer US,New York, NY: Springer US
Year: 2024
DOI: 10.1007/s10657-024-09796-x
Source: https://www.econstor.eu/bitstream/10419/315226/1/10657_2024_Article_9796.pdf
Ege , Thomas; Scheu en, Ma c
A icle — Published Ve sion
The law and economics o he da a economy: in oduc ion
o he special issue
Eu opean Jou nal o Law and Economics
P o ided in Coope a ion wi h:
Sp inge Na u e
Sugges ed Ci a ion: Ege , Thomas; Scheu en, Ma c (2024) : The law and economics o he da a
economy: in oduc ion o he special issue, Eu opean Jou nal o Law and Economics, ISSN
1572-9990, Sp inge US, New Yo k, NY, Vol. 57, Iss. 1, pp. 93-111,
h ps://doi.o g/10.1007/s10657-024-09796-x
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
h ps://doi.o g/10.1007/s10657-024-09796-x
1 3
The law andeconomics o  heda a economy: in oduc ion
o hespecial issue
ThomasEge 1· Ma cScheu en2
Accep ed: 1 Feb ua y 2024 / Published online: 4 Ma ch 2024
© The Au ho (s) 2024
Abs ac
This a icle in ends o p o ide a amewo k o be e unde s and he economic p ob-
lems and legal challenges esul ing om he ansi ion o he Eu opean economy o
a da a economy. We discuss some policy conce ns su ounding he da a economy,
such as concen a ion in he da a economy, an icompe i i e business p ac ices in he
da a economy, access o da a and da a sha ing, da a eliabili y, dis ibu ional e ec s
o he da a economy, and cybe c ime. Mo eo e , we p o ide an o e iew o some
impo an EU legal ini ia i es and e o ms and cla i y how he pape s in his special
issue con ibu e o assessing hese ini ia i es om an economic poin o iew.
Keywo ds Digi al pla o ms· Da a access· Da a sha ing· Da a eliabili y
JEL Classi ica ion K11· K20· K21· L86· O33· Y20
1 Fea u es o  heda a economy
O e he las ew decades, he wo ld has changed on an unp eceden ed scale due o
digi iza ion, he ad en o he in e ne , echnical inno a ions such as he In e ne o
Things (IoT: sma homes, sma ac o ies, au onomous d i ing e c.) and A i icial
In elligence (AI), as well as new business models such as digi al pla o ms, some
o which ha e al eady achie ed conside able poli ical and economic powe .1 The
key ing edien o his new wo ld is all kinds o da a ha can be collec ed, s o ed,
p ocessed, ans e ed, and used a much lowe cos han in he “old” wo ld wi h-
ou digi iza ion, wi hou he in e ne and wi hou he echnological and ins i u ional
* Thomas Ege
homas.ege @uni-hambu g.de
1 Facul y o Law (Facul y o Economics), Uni e si y o Hambu g, Hambu g, Ge many
2 Resea ch Uni Digi alisa ion andClima e Ac ion, Ge man Economic Ins i u e (IW), Cologne,
Ge many
1 Ti ole (2017, chap e 14).
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
1 3
ollow-up inno a ions. Fo example, Ube does no own ca s, Ai bnb and Booking.
com do no own accommoda ion, Deli e y He o does no own es au an s, bu each
o hese companies, apa om selling se ices, h i es on he da a pe aining o
he goods and se ices hey deal wi h. Pa ship, Tinde and simila pla o ms ely
on hei use s’ da a o p o ide in o med ma chings. Google collec s ia i s sea ch
engine as amoun s o use da a o enable hi d pa ies a ge ed ad e ising. Social
media, such as Facebook and X (p e iously Twi e ), p o ide digi al communica ion
channels and ely on ad e ising and da a licensing e enues. Amazon no only ac s
as a kind o mall, selling books and o he p oduc s, bu also collec s lo s o da a and
uses hem o a ge ed ma ke ing. “Big da a”, i.e., he collec ion and p ocessing o
la ge amoun s and a ie ies o aluable, complex da a, is expec ed o play a decisi e
ole o p og ess in he heal h sec o , in indus y and ag icul u e, in he ene gy sec o
(e.g., sma me e s), in esea ch, and so on.2
Howe e , besides hese (business) oppo uni ies, he ansi ion o he da a econ-
omy also en ails a numbe o p oblems, which we will discuss in mo e de ail in
Sec . 2. The p i a e and social cos s and bene i s o ha ans o ma ion depend
on he legal s uc u es, cons ain s, and condi ions, i.e., he law. P ecisely how he
design o he law a ec s he cos s and bene i s (and he eby social wel a e) hinges
on he ollowing classi ica ions o da a conce ned.
Fi s o all, we mus dis inguish be ween pe sonal and non-pe sonal da a. Pe -
sonal da a, i.e., any in o ma ion ha ela es o an iden i ied o iden i iable indi-
idual, e.g., o hei consump ion and in es men decisions, housing and mobili y,
heal h, job pe o mance e c., can be use ul o p i a e and public supplie s o goods,
se ices, and jobs, enabling hem o cus omize hei o e s and he eby make he
economy mo e e icien . Ye mos o us alue p i acy, no wan ing ou pe sonal da a
o be eco ded, p ocessed, and s o ed by go e nmen s, employe s, o o he pa ies
wi hou ou consen . Non-pe sonal da a, such as wea he da a, ma ke p ices, and all
ypes o anonymized, agg ega e da a, is gene ally less sensi i e bu may s ill wa an
p o ec ion, such as in he case o business sec e s. Secondly, some da a a e collec ed
and p ocessed a conside able cos whe eas o he s eme ge as a by-p oduc o o he
ac i i ies, such as da a on consump ion pa e ns and eading o d i ing beha iou .
Thi dly, uno ganized aw da a can be ans o med in o wo ypes o in o ma ion ha
can be dis inguished in acco dance wi h hei e ec on wel a e: p oduc i e in o ma-
ion, which c ea es no jus indi idual bu also social alue, such as he o mula o a
new d ug o he loca ion o some aluable aw ma e ial, and edis ibu i e in o ma-
ion, which has indi idual bu no social alue, such as inside knowledge o an e en
which a ec ed he p ice o some asse . These h ee classi ica ions will be impo an
o bea in mind h oughou his special issue.
Finally, he social wel a e e ec s o di e en legal ules depend on he com-
panies’ abili y o cope wi h he da a (da a economy eadiness—o da a eadiness
o sho ).3 Da a eadiness e e s o he abili y o cope wi h da a e ec i ely in da a
2 See also Ma ciano e al., (2020a,b).
3 See also he con ibu ion by Jo zik e al. in his olume.
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
s o age, da a managemen , and da a use.4 Wi hou da a eadiness, he economic
po en ial om da a sha ing o he da a economy will emain un apped.5
Recen ly, he EU gene a es a huge olume o legisla ion ela ed o di e en
aspec s o he da a economy, such as access o pe sonal and non-pe sonal da a,
cybe secu i y, in ellec ual p ope y igh s, egula ion o online pla o ms, use o da a
gene a ed by he IoT, AI, and many mo e. This in oduc ion in ends o p o ide a
amewo k o be e unde s and he economic p oblems and legal challenges esul -
ing om he ansi ion o he Eu opean economy o a da a economy.
In he ollowing sec ions, we discuss some policy conce ns su ounding he da a
economy, such as concen a ion in he da a economy, an icompe i i e business p ac-
ices in he da a economy, access o da a, da a eliabili y, dis ibu ional e ec s o he
da a economy, and cybe c ime. Mo eo e , we p o ide an o e iew o some impo -
an EU legal ini ia i es and e o ms. Finally, we cla i y how he pape s in his spe-
cial issue con ibu e o assessing hese ini ia i es om an economic poin o iew
and p o ide a be e unde s anding o he law and economics in h ee b oad a eas
o he da a economy: (1) Access o da a and da a sha ing (Ecka d /Ke be , Jeon/
Menicucci, Rubin eld), (2) da a eadiness and da a sha ing (Jo zik/Ki chho /Muel-
le -Lange , Mou on/Rusche) and (3) a i icial in elligence and o he echnologies
(Bui en, Me ens/Scheu en).
2 Some policy conce ns in heda a economy
2.1 Concen a ion in heda a economy
Digi al echnology ma ke s a e highly concen a ed o wo easons (Ti ole, 2017,
397–400; Belle lamme and Pei z 2021, chap e 1). Fi s , hey ypically exhibi (posi-
i e) ne wo k ex e nali ies: The la ge he ne wo k, he mo e bene icial i is o join
he ne wo k. Secondly, he massi e echnological in es men s ha his indus y
equi es gi e ise o economies o scale and scope, i.e., he a e age cos o p oduc-
ion declines wi h he numbe o use s, while he ma ginal cos is e y low.6 The
s onge he impac o ne wo k ex e nali ies and economies o scale and scope, he
highe he p obabili y ha “ he winne akes i all.”
O e he pas decades, digi al- ech companies such as Mic oso ( ounded in
1975), Apple ( ounded in 1976), Amazon ( ounded in 1994), Google ( ounded in
4 See Dema y (2022); Röhl e al. (2021), Büchel and Engels (2022a; b). Fo o he de ini ions o da a
eadiness, see I e s e al. (2016), among o he s. The Ge man Economic Ins i u e (IW), in co-ope a ion
wi h he F aunho e ISST, he F aunho e IAO, he ZEW Mannheim and he IIM a TU Do mund, in
he all o 2022 conduc ed a su ey on da a eadiness, based on a ep esen a i e sample o 1,051 Ge man
i ms. They ound ha da a eadiness is achie ed by 77 pe cen o he la ges companies (> 250 employ-
ees) bu by only 58 pe cen o medium-sized companies (50–249 employees) and 30 pe cen o small
companies (0–49 employees) (Büchel and Engels 2022b).
5 Büchel and Engels (2023) ind ha only 42 pe cen o Ge man companies sha e da a wi h o he com-
panies. See also Sec .2.5 on access o non-pe sonal da a and da a sha ing.
6 See also Ri kin (2014).
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
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1998, pa o he holding company Alphabe since 2015), and Facebook ( ounded
in 2004, eb anded as Me a in 2021) ha e acqui ed hund eds o o he digi al- ech
companies c ea ing an imp essi e p oduc mix (Gilbe , 2020, 31–3; Ku z, 2023,
332)7: They di e si ied hei ac i i ies by in eg a ing a la ge numbe o subs i u-
i e and complemen a y ac i i ies and hus ein o ced posi i e ne wo k ex e nali-
ies. Be ween 2001 and 2020, Google and i s pa en company Alphabe made 236
acquisi ions, such as he And oid ope a ing sys em, YouTube, Mo o ola Mobili y
o sma phones, Zaga o es au an e iews, Waze o na iga ion, and se e al
AI i ms. Be ween 2005 and 2020, Facebook made 87 acquisi ions, such as Ins a-
g am and Wha sApp, while Apple made mo e han 127 acquisi ions by 2023, such
as Bea s Elec onics o headphones and music s eaming, Shazam o music and
image ecogni ion, In el o modems, and se e al AI s a -ups.8 Be ween 1987 and
2020, Mic oso made 237 acquisi ions, including Skype, Nokia, LinkedIn, he
open-sou ce so wa e de elopmen pla o m Gi Hub, he ideo game holding com-
pany ZeniMax Media, and he AI-based echnology company Nuance Communica-
ions. Amazon has been simila ly ac i e, wi h 102 acquisi ions be ween 1998 and
2020, such as online books o es in Ge many and he UK, he in e ne mo ie da a-
base IMDb, he online music e aile CDNow, he online so wa e e aile Egghead
So wa e, he g oce y chain Whole Foods, and he media company Me o-Goldwyn-
Maye . Many o hese mo es quali y as “kille acquisi ions”, i.e., “acquisi ions o
i ms o pa en s wi h he objec i e o hei supp ession” (Ku z, 2023, 349). Fo
many yea s, hese i e US digi al- ech gian s ha e successi ely eplaced oil and
enginee ing companies among he wo ld’s mos aluable co po a ions. Today all o
hem a e among he op en companies in he wo ld: Mic oso al eady since he
1990s, Apple since 2010, Alphabe /Google since 2013, and Me a/Facebook as well
as Amazon since 2016.9
Howe e , he inc easing concen a ion o economic (and poli ical) powe has also
become appa en in o he a eas o he da a economy.10
As o oday, i e la ge comme cial publishe s (Reed Else ie , Sp inge , Wiley
Blackwell, Taylo &F ancis, and Sage) domina e he academic jou nal ma ke wi h
a ma ke sha e o mo e han 50% (Ege and Scheu en 2018, 16–21, and 2021,
1923–25). O e ime, Reed Else ie , he bigges academic publishe in he wo ld,
9 See, o example, h ps:// en. wikip edia. o g/ wiki/ Lis _ o _ public_ co po a io ns_ by_ ma ke _ capi aliza ion.
Acco ding o Acemoglu and Johnson (2023, 276) he alue o hese i e companies amoun s o app oxi-
ma ely 20% o US GDP, whe eas a he beginning o he wen ie h cen u y he alue o he hen i e big-
ges companies amoun ed o only abou 10% o US GDP. Since 2017, he Chinese digi al- ech companies
Alibaba and Tencen ha e anked among he en mos aluable companies in he wo ld, and ecen ly he
Chinese social media company By eDance, he pa en company o TikTok, has ound a place among he
la ges in e ne companies wo ldwide.
10 Rega ding US co po a ions, Zingales (2017) sees “ he isk o a ‘Medici icious ci cle,’ in which eco-
nomic and poli ical powe ein o ce each o he ” (114). He o e s h ee explana ions o his endency: (1)
“ he eme gence and di usion o ne wo k ex e nali ies”; (2) “ he inc eased ole o winne - ake-all indus-
ies, d i en by he p oli e a ion o in o ma ion-in ensi e goods ha ha e high ixed and low ma ginal
cos s”; (3) “ educed an i us en o cemen ” (121).
7 Fo mos ecen in o ma ion see also And ee (2023, 87–92).
8 h ps:// en. wikip edia. o g/ wiki/ Lis _ o _ me ge s_ and_ acqui si io ns_ by_ Apple.

97
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
has acqui ed o es ablished a numbe o ela ed business ac i i ies, such as, in pa -
icula , LexisNexis, a comme cial hos o legal in o ma ion (Lexis) and p ess and
business in o ma ion (Nexis), Scopus, an abs ac and ci a ion da abase, and a num-
be o p ep in pla o ms (Mendeley, SSRN, BeP ess). Consequen ly, Reed Else ie ,
which in 2015 e-b anded i sel as RELX g oup, has become an impo an playe
in he da a economy. Du ing he las decades, he Thomson Reu e s Co po a ion,
which consis s o he Reu e s news agency and he Canadian Thomson Co po a ion,
he wo ld’s la ges in o ma ion company, also di e si ied in o a numbe o ela ed
ac i i ies, such as, in pa icula , Wes law, one o he “gold s anda d” esea ch p od-
uc s o he legal p o ession, and he academic me ics p oduc Cla i a e (including
he Web o Science, which was o me ly known as Thomson Science and compe es
wi h RELX’s Scopus). Consequen ly, oday RELX and Thomson Reu e s join ly
co e a la ge sha e o he legal in o ma ion ma ke and he ma ke o academic me -
ics and he eby s eng hened economies o scope and ne wo k ex e nali ies.11
2.2 An icompe i i e business p ac ices in heda a economy
An icompe i i e business p ac ices in he EU by any company, including he da a
gian s, usually all unde A . 102 TFEU (“abuse o a dominan posi ion”). This ex-
pos app oach equi es ex ensi e ga he ing and p ocessing o in o ma ion. In he
da a economy, many se ices a e os ensibly ee o cha ge bu he use s a e obliged
o e eal aluable in o ma ion o he p o ide , who sells his in o ma ion o ad e is-
e s. These ypes o ma ke s ha e been cha ac e ized as wo-sided ma ke s (Roche
and Ti ole 2003). Mo e gene ally, many da a companies c oss-subsidize he p ices
o complemen a y p oduc s o s eng hen he ne wo k ex e nali ies om hei main
p oduc (mul i-sided ma ke s). Compe i ion au ho i ies o en ind i di icul o de e -
mine when such a business p ac ice is an i-compe i i e. Since he companies a e
allowed o con inue hei p ac ice un il he inal cou decision is alid, since he
s akes a e high, and since he companies ha e enough esou ces o sus ain a leng hy
legal ba le, hey ha e an incen i e o delay he p ocedu es as much as hey can
(Hummel, 2023; Schä e , 2023).
The e a e many examples o leng hy legal ba les due o he abuse o a dominan
posi ion in he da a economy. The pa allel cases agains Mic oso in he US and
he EU o abusing i s dominan posi ion in he ma ke o PC ope a ing sys ems by
“ ying and bundling” ook mo e han 14yea s in o al, om he i s in es iga ions
in he US un il he inal decision by he CJEU.12 The case agains Google o abus-
ing i s dominan posi ion on he ma ke o online gene al sea ch by placing i s own
compa ison-shopping se ice mo e a ou ably han compe ing se ices consumed
abou 11yea s om he i s in es iga ions un il he inal CJEU decision.13 In 2010,
11 See o many de ails Lamdan (2023).
12 Fo he US case see, e.g., Rubin eld (2020), o he EU case see Kühn and Reenen (2009) and an den
Be gh (2017, 314–6).
13 h ps:// eu - lex. eu opa. eu/ legal- con e n / EN/ TXT/ PDF/? u i= CELEX: 52018 XC011 2(01). See also
Pe sch (2021).
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
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se e al na ional compe i ion au ho i ies began in es iga ing he use o bes -p ice
clauses by online a el agencies, such as Booking and Expedia. While “wide” e ail
pa i y clauses p e en pa icipa ing ho els om o e ing be e oom p ices o a ail-
abili y on any o he sales channel, “na ow” e ail pa i y clauses only p e en hem
om publishing be e p ices on hei websi es. Some na ional au ho i ies ha e only
banned wide e ail pa i y clauses, o he s banned bo h ypes. The p oblem was sol ed
in 2022 a he EU le el by he adop ion o he new Block Exemp ion Regula ion o
Ve ical Ag eemen s, which only accep s na ow e ail p ice clauses. Consequen ly,
i ook 12yea s om he i s in es iga ions un il he inal solu ion.14
The long ime be ween he s a o he in es iga ions and he inal decisions by
he Cou o by he legisla o , which is p ima ily due o he di icul y o Eu opean
compe i ion au ho i ies o de e mine ele an ma ke s, dominan posi ions, he h ea
o po en ial compe i ion, and abusi e business p ac ices and o sanc ion abusi e
business p ac ices in he da a economy, inally led o he EU Digi al Ma ke s Ac ,
which we discuss in Sec .3 below.
2.3 Access oda a
2.3.1 Gene al ema ks
All mode n socie ies ace he ques ion as o who owns he ze aby es o da a gene -
a ed in he da a economy.15 O , mo e speci ically, wha a e he igh s and obliga-
ions o he ele an ac o s wi h espec o hese da a? Da a a e non- i al goods, i.e.,
hei use by one pa y does no p eclude ano he pa y’s use.16 Besides non- i al y,
Coyle e al., (2020, 4) lis se e al o he economic cha ac e is ics o da a ha a ec
hei social alue: excludabili y, ex e nali ies, inc easing o dec easing e u ns, he
la ge op ion alue o da a, he high up- on and low ma ginal cos o da a collec-
ion, and complemen a y in es men s equi ed o da a use. These poin s aise some
ollow-up ques ions: Fo which ypes o da a should in ellec ual p ope y igh s be
de ined? How di icul is i o en o ce in ellec ual p ope y igh s o o he p o ec ed
da a igh s and o p e en academic plagia ism, in pa icula gi en he ise o gene -
a i e AI, such as Cha GPT?17 How is o how should access o da a and da a sha ing
be egula ed (especially ega ding da a ha a e no p o ec ed by in ellec ual p ope y
igh s)? Who has, o should ha e, he igh o make money om owning ce ain
da a? Who is, o should be, liable o a “de ec i e” p oduc ha elies on AI,18 e.g.,
in au onomous d i ing – he p oduc manu ac u e , he supplie s o componen s,
18 See also Wagne (2019), F iehe (2019), and he con ibu ion by Bui en in his olume.
15 See also Ti ole (2017, 405 .), Leyens (2019), Schä e (2019), and he con ibu ion by Ecka d /Ke be
in his olume.
16 Samuelson (1954) in oduced he e m ‘collec i e consump ion goods’ o such goods and p oposed
condi ions o hei op imal supply.
17 In June/July 2023, a Cali o nia law i m iled class-ac ion law-sui s agains OpenAI o ‘s ealing’ pe -
sonal da a o ain Cha GPT and agains Google o ‘sec e ly s ealing’ as amoun s o da a om he web
o ain i s AI echnologies, such as ‘Ba d’; h ps:// masha ble. com/ a ic le/ google- lawsu i - ai- ba d.
14 h ps:// ec. eu opa. eu/ commi ssion/ p ess co ne / de ail/ en/ ip_ 22_ 5045.
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
he so wa e p o ide , p o ide s o main enance and epai , o he ope a o ? Which
da a a e, o should be, po able, and o wha ex en does po abili y depend on
in e ope abili y?19
2.3.2 Access ope sonal da a
An impo an and con o e sial ques ion is how much access p i a e and public
ac o s should ha e o he ci izens’ pe sonal da a, o in o he wo ds: how s ic ly he
igh o p i acy should be p o ec ed.20 Mo e access o pe sonal da a means mo e
anspa ency and, maybe, mo e e iciency.21 Knowing mo e abou po en ial business
pa ne s means being in a be e posi ion o assess hei eliabili y be o e en e ing
in o a con ac ; knowing mo e abou a poli ician means being in a be e posi ion o
make a well-in o med decision on elec ion day; knowing mo e abou suspec ed e -
o is s helps he police p e en a acks. Howe e , oo much access o pe sonal da a
by powe ul public o p i a e ac o s migh lead o socially ine icien o e in es men
in in o ma ion esea ch (Hi shlei e 1971) and excessi e da a sha ing,22 and i may
acili a e exploi a ion, blackmail, and opp ession. Due o ex e nali ies esul ing om
excessi e da a sha ing, indi iduals ha e li le incen i e o p o ec hei da a and p i-
acy (Acemoglu e al., 2022). Consequen ly, p i acy p o ec ion and he p o ision
o indi idual eedom equi e collec i e ac ion. Finding he ‘ igh ’ balance be ween
p i acy p o ec ion and p omo ing he bene i s o disclosu e is clea ly a challenge.
A one ex eme, he EU’s Gene al Da a P o ec ion Regula ion o 2016 appa en ly
p o ides o s ong p o ec ion o pe sonal da a.23 A he o he ex eme, mos Wes e n
obse e s would p obably ag ee ha China’s collec ion o mass da a on indi idual
beha iou by acial ecogni ion so wa e and he in oduc ion o a na ional social
c edi sys em ha collec s in o ma ion on he deg ee o which indi iduals and busi-
nesses comply wi h social no ms cons i u es oo much (public) access o pe sonal
da a and oo li le p o ec ion o p i acy.24
I consume s ha e li le ai h in comme cial pla o ms using hei pe sonal da a
con iden ially, he esul may be an unde use o hese pla o ms, e en i hey p o ide
19 See also he con ibu ions by Jeon/Menicucci and Rubin eld in his olume.
20 C . Ti ole (2021, 2007): “How anspa en should ou li e be o o he s? Mode n socie ies a e s ug-
gling wi h his ques ion as connec ed objec s, social ne wo ks, a ings, a i icial in elligence, acial ec-
ogni ion, cheap compu e powe and a ious o he inno a ions make i inc easingly easy o collec , s o e,
and analyze pe sonal da a.” Ti ole also p o ides a o mal model on he calculus o social app o al. See
also he e iew a icle by Acquis i e al. (2016).
21 This poin is s essed by S igle (1980) and Posne (1981).
22 C . Acemoglu e al., (2022, 219): “when an indi idual sha es he da a, she comp omises no only on
he own p i acy bu he p i acy o o he indi iduals whose in o ma ion is co ela ed wi h he s. This neg-
a i e ex e nali y ends o c ea e excessi e da a sha ing. Mo eo e , when he e is excessi e da a sha ing,
each indi idual will o e look he p i acy conce ns and pa wi h he own in o ma ion because o he s’
sha ing decisions will ha e al eady e ealed much abou he .”.
23 Fo a c i ical assessmen , see Hoo nagle e al. (2019) and Co one (2024).
24 Fo mo e de ail, see Acemoglu and Johnson (2023, chap e 10), who s ess ha digi al echnologies
and he in e ne can bo h s eng hen and unde mine au ho i a ian egimes (see e.g. he use o Facebook
and Twi e du ing he A ab Sp ing) – hese echnologies a e nei he inhe en ly an idemoc a ic no dem-
oc a ic (pp. 353–4).
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
1 3
a bene i o all use s (Pa e o imp o emen ). Ti ole (2017, 408 .) discusses he spe-
cial case o heal h insu ance: On he one hand, he g ea e a ailabili y o pe sonal
in o ma ion allows he insu e s o cha ge lowe p emiums om hose who beha e
esponsibly, which educes he mo al haza d p oblem. On he o he hand, g ea e
a ailabili y o in o ma ion on he gene ic backg ound o he insu ed can cause a
b eakdown o mu uali y and isk sha ing, wi hou a ec ing he isk beha iou o he
insu ed. In his case, “in o ma ion des oys insu ance” ( he Hi shlei e e ec ), since
insu ance is only possible i he e is unce ain y ex an e, when he insu ance con ac
has o be signed. Fo ha eason, mos o he wo ld’s heal h ca e sys ems a e hea ily
egula ed and ypically o bid selec ion based on isk cha ac e is ics, especially on
hose ha he insu ed canno do any hing abou .
2.3.3 Access onon‑pe sonal da a andda a sha ing
Being non- i al, non-pe sonal da a (e.g., machine-gene a ed da a on a p oduc ion
p ocess) is a key esou ce ha should be employed by as many ac o s as possible
– a leas om a social e iciency poin o iew. Da a sha ing is he e o e o spe-
cial signi icance. Ma ching ex e nal da a wi h a company’s own da a can yield new
business models o acili a e esou ce op imiza ion, e.g., in p oduc ion and deli -
e y p ocesses. Ye legal,25as well as o ganiza ional, echnical and economic ba ie s
s ongly a ec co po a e incen i es o da a sha ing.26
F om an economic poin o iew, es ic ions on access o non-pe sonal da a ha
ha e social alue – as opposed o me e p i a e, edis ibu i e alue—a e only jus i-
ied i he collec ion o hese da a and hei p ocessing in o aluable in o ma ion
causes non- i ial cos s o he da a holde (Hi shlei e 1971).27 F ee access o such
da a would unde mine he incen i e o gene a e hem in he i s place, so a pay-
wall may be wa an ed. The eluc ance o sha e such da a in he business- o-business
(B2B) sec o may be o e come by licensing ag eemen s ha o e a means o con ol
da a access (F ies and Scheu en 2023).
In p ac ice, he e a e wo easons o economically unjus i ied es ic ions o he
access o non-pe sonal da a. Fi s , as al eady discussed in Sec .2.1, da a ma ke s
a e ypically cha ac e ized by ma ke powe , ne wo k e ec s and digi al pla o m
compe i ion. A ew e y powe ul companies, so-called ga ekeepe s, o en decide
on access o and he quali y o da a. A ypical example o a da a ma ke whe e
ma ke powe can be exploi ed in his way is "connec ed ca s". In ha ma ke , he
so-called "ex ended ehicle" concep allows ca manu ac u e s o con ol access o
he ehicle da a h ough he echnical design o s o age o senso da a on hei own
(cloud) se e sys ems (Spech -Riemenschneide and Ke be , 2022). Tha way, he
25 See also Röhl and Scheu en (2023).
26 The ecen IW su ey (see oo no e 4) ound ha 58 pe cen o Ge man companies do no engage in
any da a sha ing a all. La ge companies a e mo e likely o pa icipa e in da a sha ing, be i in a ecipi-
en o ecipien /p o ide ole. Ye he p opo ion o companies ha ac pu ely as da a p o ide s is la gely
independen o company size (Büchel and Engels, 2023).
27 Res ic ions on access o in o ma ion ha is only p i a ely aluable would induce people o in es
sca ce esou ces wi hou c ea ing addi ional social alue.
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Eu opean Jou nal o Law and Economics (2024) 57:93–111
Re e ing o he GDPR, he Da a Ac P oposal and he DMA, Jeon/Menicucci
o mally analyze how da a po abili y a ec s compe i ion. They dis inguish be ween
wo opposing e ec s o da a po abili y on consume su plus: he en -dissipa ion
e ec and he compe i ion-in ensi ying e ec . An e alua ion o da a po abili y mus
assess he magni ude o he e ec a e consume lock-in ( he compe i ion in ensi y-
ing e ec ) ela i e o he e ec be o e consume lock-in ( he en -dissipa ion e ec ),
which mos policy make s seem o neglec . Thus, Jeon/Menicucci con ibu e o he
p oblems discussed in Sec s.2.2 and 2.5.
Rubin eld explo es he p i a e and social cos and bene i s o da a po abili y and
in e ope abili y and he case o public in e en ion. He shows how he EU and he
US di e in hei app oaches o managing po abili y and in e ope abili y issues.
While he EU has chosen a egula o y app oach ia he GDPR and he DMA, he
US ely mo e hea ily on he compe i ion agencies. The au ho concludes ha hese
di e ences make sense in ligh o he wo egions’ di e en ede al sys ems. The
con ibu ion hus ela es ela es o Sec s.2.1, 2.2 and 2.5.
Using a simple o mal model, Jo zik/Ki chho /Muelle -Lange discuss compa-
nies’ incen i es o in es in da a c ea ion, o use he da a and o sha e i wi h o he
companies. They compa e wo egula o y se ings, “no da a-sha ing policy” and
“da a-sha ing policy”, aking in o accoun he companies’ da a economy eadiness.
Fo a da a-sha ing policy o enhance wel a e i mus no dis u b he companies’
incen i es o c ea e and p epa e da a. This la gely applies o he EU’s P oposal o a
Da a Ac . Jo zik/Ki chho /Muelle -Lange ocus on p oblems discussed in Sec s.2.2
and pa icula ly 2.3.
Rusche/Mou on examine A icle 5 (4) o he DMA which a ge s an i-s ee ing
clauses be ween pla o ms and business use s. These clauses aim o p e en business
use s o he ga ekeepe s om “di ec ing acqui ed consume s o o e s o he han
hose p o ided on he pla o m, e en hough such al e na i e o e s may be … mo e
a ac i e”. The au ho s employ a simple game- heo e ic model o show ha (a) he
an i-s ee ing obliga ion makes pla o ms mo e a ac i e o business use s, (b) he
obliga ion is also a ac i e o business use s, (c) he pla o m has an incen i e o
become e ically in eg a ed, (d) he amoun o da a a ailable o business use s and
he pla o m is likely o inc ease, and (e) he ees a e likely o inc ease i all busi-
ness use s we e al eady using he pla o m be o e. As such, concen a ion in he da a
economy (Sec .2.1) and an i-compe i i e business in he da a economy (Sec .2.2)
a e impo an p oblems discussed by Rusche/Mou on.
Bui en s udies he e icien de ini ion o p oduc (manu ac u ing and design)
de ec s o AI sys ems wi h au onomous capabili ies and he implica ions o an e i-
cien alloca ion o liabili y o AI be ween p oduce s and use s. In pa icula , he
pape illus a es how AI sys ems dis up he adi ional balance o con ol and isk
awa eness be ween use s and p oduce s. Finally, some policy implica ions a e dis-
cussed and he EU p oposal o a e ised P oduc Liabili y Di ec i e (PLD P oposal)
is e alua ed. The e a e wo c i ical poin s wi h his p oposal: Fi s , i e ains he con-
sume -expec a ion es , which conside s whe he a p oduc mee s he sa e y expec a-
ions he public is en i led o, conside ing all ele an ci cums ances. Howe e , his
es may lead o he use o un easonable consume sa e y expec a ions as a bench-
ma k, in pa icula ega ding AI isks. Un o una ely, he p oposal does no se le

108
Eu opean Jou nal o Law and Economics (2024) 57:93–111
1 3
whe he a isk/u ili y-analysis is allowed. Secondly, e en hough he e is a case o
s ic liabili y whe e isk is signi ican and isk awa eness is low, he PLD P oposal
does no ollow his ack bu ins ead p o ides o an alle ia ed bu den o p oo . To
cope wi h hese p oblems, p oduc liabili y should be complemen ed by adequa e
egula o y and ce i ica ion s anda ds. Bui en hence con ibu es o Sec s.2.4 and o
some aspec s o Sec .2.6.
Me ens/Scheu en mo e gene ally discuss he e ec s o pa en p o ec ion on inno-
a ion in he da a economy while also assessing he impac o he DMA and he
Da a Ac . Mos impo an ly, he au ho s discuss he e ec s o pa en b ead h on he
quali y and ele ance o inno a ions as measu ed by he numbe o o wa d ci a-
ions. The au ho s use da a on pa en s o echnologies o he ou h indus ial e o-
lu ion, which a e a he co e o he da a economy (e.g. IoT, AI e c.). Finding an
e ec o pa en b ead h on he quali y/ ele ance o inno a ions, he au ho s o he
i s ime show ha ou h indus ial e olu ion echnologies likely shi he op imal
design o he pa en sys em in a ou o sho and b oad pa en s o s imula e u u e
echnological de elopmen s. Mo eo e , he pape inds e idence o pa h dependen-
cies and di e ences in he cul u al o igins o he in e na ional pa en sys ems (u ili-
a ianism e sus na u al igh s). In he ligh o he dominance o he big ech gian s
om he US and China in e ms o he numbe and ele ance o pa en applica-
ions, he au ho s s ess he impo ance o he Da a Ac and he DMA o coun e -
ac he inc easing ma ke powe , especially wi h espec o access o da a (see also
Sec .2.3.3). The pape hus p ima ily deals wi h he so o p oblems discussed in
Sec s.2.2 and 2.3.
Acknowledgemen s We would like o hank Sönke Häsele , Ve a Dema y, Man ed Holle , he pa ici-
pan s o he esea ch semina law and economics a he Uni e si y o Kassel and wo anonymous e e ees
o aluable commen s.
Au ho con ibu ions All au ho s w o e he main manusc ip ex and e iewed he manusc ip .
Funding Open access unding enabled and o ganized by P ojek DEAL. Ma c Scheu en acknowledges
unding om he Ge man Fede al Minis y o Educa ion and Resea ch (BMBF) wi hin he esea ch p o-
jec “Incen i es and Economics o Da a Sha ing” (IEDS; unding numbe IEDS003), seeh ps://ieds-p o-
jek .de/ o mo e in o ma ion.
Da a a ailabili y No da ase s we e gene a ed o analysed du ing he cu en s udy.
Decla a ions
Con lic o in e es The au ho s ha e no compe ing in e es s o decla e ha a e ele an o he con en o
his a icle.
Open Access This a icle is licensed unde a C ea i e Commons A ibu ion 4.0 In e na ional License,
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