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Data portability effects on data-driven innovation of online platforms: Analyzing Spotify

机译：数据可移植性对网络平台的数据驱动创新的影响：分析Spotify

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The EU General Data Protection Regulation (GDPR) introduces a new right to data portability, which allows users to move their personal data to other platforms, potentially affecting competition between rival platforms offering similar (homogeneous/substitute) products or services within the European Union. However, it is still unclear what effects this new regulation could have on competition and, consequently, on innovation in digital markets. Therefore, this paper analyzes the effect of data portability driven by competition on the data-driven innovation response of online platforms such as Spotify, Google, and Facebook.We conduct an empirical analysis of Spotify, which is an online platform facing competition within the EU, and perform a comparison between data portability to number portability of the telecommunication sector to predict the future impact of the new regulation. Finally, we compare the observations on Spotify with Facebook and Google, which are companies in winner-takes-all markets.We argue that online platforms like Spotify, which face competition within the EU, will invest in two forms of data-driven innovation due to the effect of data portability. These types are 'exploitation-innovation,' by improving the existing technology, and 'exploration-innovation' by developing new technology. In 'exploitation-innovation,' firms, like Spotify, will increase investments in data-driven innovation to enhance users' engagement and retention to avoid churn. In 'exploration-innovation,' these firms will invest in data-driven innovation to develop new algorithms to include data from customers acquired from their competitors. On the contrary, online platforms, like Facebook or Google, which do not face real competition, will not have a substantial need to invest in data-driven innovation solely due to data portability.
机译：欧盟一般数据保护规范（GDPR）引入了新的数据便携权，允许用户将其个人数据移到其他平台，可能影响竞争平台之间的竞争，这些平台在欧洲联盟内提供类似（均匀/替代）产品或服务。然而，目前尚不清楚这项新规定可能对竞争的影响以及数字市场的创新。因此，本文分析了通过竞争对网上平台的数据驱动创新响应驱动的数据可移植性的影响，例如Spotify，Google和Facebook的竞争。我们对Spotify进行了实证分析，这是一个面对欧盟竞争的在线平台，并执行数据便携性与电信扇区的数字可移植性之间的比较，以预测新规则的未来影响。最后，我们可以比较关于使用Facebook和Google的Spotify的观察，这些谷歌是赢家的公司。我们认为Spotify等在线平台，在欧盟内部竞争，将投资两种形式的数据驱动创新对数据便携性的影响。通过开发新技术，通过改善现有技术和“探索 - 创新”，这些类型是“开发 - 创新”，“探索 - 创新”。在“开发 - 创新”中，像Spotify一样，将增加对数据驱动创新的投资，以提高用户的参与和保留，以避免流失。在'探索 - 创新方面，这些公司将投资数据驱动的创新，以开发新的算法，以包括从竞争对手获得的客户的数据。相反，在线平台，如Facebook或Google，它不面对真正的竞争，不会因为数据携带而完全没有进入数据驱动的创新。

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