Posted by Social Science Research Network
By Maurice E. Stucke (University of Tennessee) & Allen P. Grunes (The Konkurrenz Group)
Abstract: In contrast to the European Commission, the US Department of Justice and Federal Trade Commission have not meaningfully prosecuted monopolistic abuses over the past 16 years. The US Supreme Court’s view on monopolies has also become forgiving. There is no empirical support that monopolies—whether in dynamic or static markets—are generally good for society.
Yes, one might say. But with the expansion of the data-driven economy, one has less to fear of monopolization. We debunk these myths in our book, Big Data and Competition Policy (Oxford University Press 2016). Our aim here is to summarize several reasons why data-driven markets can be monopolized, and identify one recent example of a data-driven exclusionary tactic. Thus, prosecuting monopolistic abuses is even more important in certain online industries.