Governance of Data Sharing: a Law & Economics Proposal

TILEC Discussion Paper No. 2021-001

CentER Discusson Paper No. 2021-004

24 Pages Posted: 29 Jan 2021 Last revised: 4 Mar 2021

See all articles by Jens Prufer

Jens Prufer

Tilburg University - CentER; Tilburg University - Department of Economics; Tilburg University - Law and Economics Center (TILEC)

Inge Graef

Tilburg Law School; Tilburg University - Tilburg Institute for Law, Technology, and Society (TILT); Tilburg Law and Economics Center (TILEC)

Date Written: January 22, 2021

Abstract

To prevent market tipping, which inhibits innovation, there is an urgent need to mandate sharing of user information in data-driven markets. Existing legal mechanisms to impose data sharing under EU competition law and data portability under the GDPR are not sufficient to tackle this problem. Mandated data sharing requires the design of a governance structure that combines elements of economically efficient centralization with legally necessary decentralization. We identify three feasible options. One is to centralize investigations and enforcement in a European Data Sharing Agency (EDSA), while decision-making power lies with National Competition Authorities in a Board of Supervisors. The second option is to set up a Data Sharing Cooperation Network coordinated through a European Data Sharing Board, with the National Competition Authority best placed to run the investigation adjudicating and enforcing the mandatory data-sharing decision across the EU. A third option is to mix both governance structures and to task national authorities to investigate and adjudicate and the EU-level EDSA with enforcement of data sharing.

Keywords: Data sharing, data-driven markets, economic governance, competition law, data protection, regulation

JEL Classification: K21, L44, L51, L86

Suggested Citation

Prufer, Jens and Graef, Inge, Governance of Data Sharing: a Law & Economics Proposal (January 22, 2021). TILEC Discussion Paper No. 2021-001, CentER Discusson Paper No. 2021-004, Available at SSRN: https://ssrn.com/abstract=3774912 or http://dx.doi.org/10.2139/ssrn.3774912

Jens Prufer (Contact Author)

Tilburg University - CentER ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg University - Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Inge Graef

Tilburg Law School ( email )

Tilburg, 5000 LE
Netherlands

Tilburg University - Tilburg Institute for Law, Technology, and Society (TILT) ( email )

P.O.Box 90153
Prof. Cobbenhagenlaan 221
Tilburg, 5037
Netherlands

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
79
Abstract Views
354
rank
356,401
PlumX Metrics