Enforcement Cooperation & Balancing Portability
This content discusses the challenges and solutions related to data portability, interoperability, and competition, focusing on the impacts on antitrust law, competition policy, privacy, and cybersecurity. It highlights the Portability and Other Required Transfers Impact Assessment (PORT-IA) as a proposed solution to balance data access and security concerns in a digital environment.
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Presentation Transcript
Enforcement Cooperation & Balancing Portability/Interoperability Objectives Professor Peter Swire Georgia Tech OECD Competition Committee Hearing on Data Portability, Interoperability, and Competition June 9, 2021 (version 2)
Publications Using the Portability and Other Required Transfers Impact Assessment ( PORT-IA ) in Antitrust Law Competition Policy International https://www.competitionpolicyinternational.com/using-the- portability-and-other-required-transfers-impact-assessment-port- ia-in-antitrust-law/ The Portability and Other Required Transfers Impact Assessment: Assessing Competition, Privacy, Cybersecurity, and Other Considerations Available at SSRN https://ssrn.com/abstract=3689171
Overview Dilemma: antitrust tends to open data flows, but privacy/security tend to close them Proposed answer: the Portability and Other Required Transfers Impact Assessment (PORT-IA) Multiple enforcement agencies
Terminology: PORT Right to data portability is about an individual right to transfer data Portability is a term of art for transfers of data of one person An individual right to transfer to self or 3d party Actual or proposed mandates to transfer databases, data of more than one person In Europe, called data sharing ; vague term, because data is shared in so many ways Interoperability often a technical term about 2-way operations My papers propose Other Required Transfers PORT: Portability or Other Required Transfers U.S. health care individual portability, and a hospital has a right to transfer all of its records to a new software provider EU Free Flow of Data Regulation similar to hospital
The Dilemma: Open or Close Data Flows? Competition/antitrust many reasons to open data flows Idea: if more companies have access to commercially valuable data, then more innovation and competition Lock-in/switching cost effects more prominent in case studies than network effects Privacy and Cybersecurity close data flows What if data gets to the wrong people? Cybersecurity focus on unauthorized access Privacy focus on what access should be authorized, and often be cautious unless there is user consent Data of 3d persons does A have the right to share photo that includes B? Phone number portability not typical Large lock-in effect, low security/privacy risks
Responding to the Dilemma Create a well-designed Portability and Other Required Transfers Impact Assessment ( PORT-IA ) Similar to Privacy Impact Assessment (U.S.) or Data Protection Impact Assessment (E.U.) Methodology Draft structured questions for a systematic assessment Test the draft questions against multiple case studies EU/US Phone number, health care, financial services, open data, auto dealers Validate the structured questions based on the case studies
Institutional use of PORT-IAs Conduct PORT-IA for legislation, regulation, and company product choice Systematic process to assess risks and benefits across domains PORT-IAs can inform antitrust enforcement decisions E.g., are cybersecurity and privacy arguments for exclusion genuine or a pretext FRAND as one criterion for that decision PORT-IAs can assist enforcers and judges to design remedies Meet competition goals Avoid unnecessary harm to data security and privacy
Conclusion Opening up data flows transferring data can have great benefits, for competition, innovation, freedom of choice, etc. Closing data flows for privacy and cybersecurity also can have great benefits PORT-IA provides a method that is agnostic about each proposal What are the benefits and costs from this required transfer? Can we increase the benefits? (such as focusing transfers where will help competition) Can we reduce the costs? (such as tailored privacy rules) Can we assist regulators in enforcement decisions and remedies? For this complex and increasingly important topic, the PORT-IA can assist policy-makers and companies to reach better decisions
