Should We Be Concerned About Data-Opolies?

Maurice E. Stucke:

With the rise of a progressive antitrust movement, the power of Google, Apple, Facebook and Amazon is now topical. This article explores some of the potential harms from data-opolies. Data-opolies, in contrast to the earlier monopolies, are unlikely to exercise their power by charging higher prices to consumers. But this does not mean they are harmless. Data-opolies can raise other significant concerns, including less privacy, degraded quality, a transfer of wealth from consumers to data-opolies, less innovation and dynamic disruption in markets in which they dominate, and political and social concerns.

Data-opolies can also be more durable than some earlier monopolies. Moreover, data-opolies at times can more easily avoid antitrust scrutiny when they engage in anticompetitive tactics to attain or maintain their dominance.