Can data exploitation be properly addressed by competition law? A note of caution

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REVUE DES DROITS DE LA CONCURRENCE | COMPETITION LAW REVIEW

Can data exploitation
be properly addressed
by competition law?
A note of caution
Law & Economics l Concurrences N° 1-2021                      l pp. 75-82

Jörg Hoffmann
joerg.hoffmann@ip.mpg.de
Doctoral Student and Research Fellow
Max Planck Institute for Innovation and Competition, Munich

Omar Vásquez Duque
omarvd@stanford.edu
J.S.D. and M.A. (Econ) Candidate
Stanford University
John Olin Fellow in Law and Economics
Stanford University
Law & Economics

 Jörg Hoffmann
                                                                       Can data

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 joerg.hoffmann@ip.mpg.de

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 Doctoral Student and Research Fellow

                                                                       exploitation be
 Max Planck Institute for Innovation and
 Competition, Munich

 Omar Vásquez Duque*
 omarvd@stanford.edu
 J.S.D. and M.A. (Econ) Candidate                                      properly addressed
                                                                       by competition law?
 Stanford University
 John Olin Fellow in Law and
 Economics
 Stanford University

                                                                       A note of caution
 ABSTRACT                                                              Introduction
 In this brief piece of caution, we argue that
 competition law is not well-suited for dealing                        1. Competition law is experiencing a remarkable revival. The U.S. antitrust
 with exploitative data practices. As consumers                        authorities have recently sued both Google and Facebook, and antitrust
 usually act as if they did not value their                            policy was a matter of debate in the last presidential elections.1 The European
 privacy, legal remedies that neglect what
 social scientists call “the privacy paradox”
                                                                       Commission just presented charges against Amazon2 and fined Google for alleged
 are unlikely to improve the current status quo.                       abuses in the markets of mobile operating systems, and mobile communication
 We claim that privacy exploitation is better                          applications and services.3 The increased awareness about the role of antitrust
 explained by informational and behavioral                             in a well-functioning economy encompasses not only its political salience and
 failures. Our analysis has important policy
 and legal implications as is shown in our                             its enforcement but also academic proposals that suggest expanding antitrust’s
 assessment of the German Facebook                                     domain to incorporate broader goals, such as political power and industrial
 Case. Under plausible assumptions,                                    concentration.4 While those ends may influence the principles of competition
 if consumer demand does not police
 the privacy attribute, any competitor
                                                                       policy in some jurisdictions, another group of scholars recommends using
 will exploit it and thus competition will fail                        competition laws to tackle excessive data collection, inequality, sustainability,
 to yield higher privacy protection standards.                         among other economic or social failures. These goals would greatly expand the
 Dans cet article, nous soutenons que le droit                         scope of antitrust policy in most jurisdictions. However, many of these market or
 de la concurrence n’est pas bien adapté                               social failures are precisely the result of free-market competition.5
 pour traiter des pratiques d’exploitation
 des données. Les consommateurs agissant
 généralement comme s’ils n’attachaient                                2. Competitive markets, for better or worse, provide what consumers reveal they
 pas d’importance à leur vie privée, les voies                         want with their purchasing behavior. Either by failing at rewarding fair-trade
 de recours juridiques qui négligent ce                                companies paying a couple of extra pennies for bananas that were not produced
 que les spécialistes des sciences sociales
 appellent le «privacy paradox» ont peu
                                                                       by employing children,6 by driving fuel-inefficient cars, or by “agreeing” to share
 de chances d’améliorer le statu quo actuel.                           one’s data in return for getting a service “for free,” consumers send important
 Nous affirmons que l’exploitation des données                         signals to the supply side of the market on what we want and how much we are
 personnelles s’explique mieux
                                                                       willing to pay.7 While our moral principles tell us that child labor, pollution, and
 par les défaillances informationnelles
 et comportementales. Notre analyse
 a d’importantes implications politiques et
 juridiques, comme le montre notre évaluation
                                                                       1  A. Douglas Melamed, Antitrust Law and Its Critics, (January 14, 2020) Antitrust L. J. 83 (forthcoming), available at SSRN:
 de l’affaire Facebook en Allemagne.
                                                                           http://dx.doi.org/10.2139/ssrn.3519523.
 Selon des hypothèses plausibles,
 si la demande des consommateurs                                       2  https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2077.
 ne contrôle pas l’attribut de la vie privée,
 tout concurrent l’exploitera et la concurrence                        3  https://ec.europa.eu/commission/presscorner/detail/it/MEMO_15_4782.
 ne parviendra donc pas à produire                                     4  For a summary of some of these proposals, see H. Hovenkamp, Antitrust’s Borderline, (August 11, 2020) University of Pennsylvania,
 des normes de protection de la vie privée                                 Institute for Law & Economics Research Paper No. 20-44, available at SSRN: http://dx.doi.org/10.2139/ssrn.3656702.
 plus élevées.
                                                                       5  See, e,g., G. A. Akerlof and R. J. Shiller, Phishing for Phools: The Economics of Manipulation and Deception (Princeton University
                                                                           Press, 2015); O. Bar-Gill, Seduction by Contract: Law, Economics, and Psychology in Consumer Markets (Oxford University Press,
                                                                           2012), chap. 1; O. Vásquez Duque, No Alarms and Many Surprises: Salience as a Basis for Excessive Pricing Intervention in an
                                                                           Antitrust Context, Journal of Competition Law & Economics 16, No. 3 (2020), https://doi.org/10.1093/joclec/nhaa017.

* The authors are ordered alphabetically. Omar                         6  See, e.g., Lidl Backs Away from Fairtrade Bananas, Banana Link, May 20, 2019, https://www.bananalink.org.uk/news/lidl-
  Vásquez Duque is the corresponding author                                backs-away-from-fairtrade-bananas.
  invited to contribute to this issue. The author
  acknowledges the thoughtful feedback provided                        7  F. A. von Hayek, Der Wettbewerb als Entdeckungsverfahren, in Freiburger Studien (1969) 249–65; M. S. Snow, Competition
  by A. Douglas Melamed, Daniel Sokol and                                  as a Discovery Procedure, The Quarterly Journal of Austrian Economics 5, No. 3 (September 1, 2002): 9–23, https://doi.
  Mark Lemley.                                                             org/10.1007/s12113-002-1029-0.

                                       Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?                           75
selling out our privacy are reproachable, our consumer                                             Section III assesses the German case, criticizing its shift

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     behavior is inconsistent with our reported ethical                                                 towards a normative causality based on hypothetical

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     identity.                                                                                          counterfactuals drew on misleading empirical evidence.
                                                                                                        Section IV concludes echoing what experts report have
     3. Markets may fail at achieving an optimal outcome for                                            already suggested: that new regulatory bodies are needed,
     several reasons. Monopoly power is just one of those                                               which should have the expertise and the power to design
     reasons. Other commonly accepted bases for regulatory                                              adequate rules to regulate the challenges brought by the
     intervention are informational problems, and externalities.8                                       digital economy, notwithstanding the possibility that
     Interestingly, what many academics are arguing when                                                competition authorities could count on a specialized unit.
     they advocate for the expansion of antitrust is the use of
     competition laws to address problems unrelated to the lack
     of competition, or actually caused by competition itself.9
     Privacy exploitation, we claim, is one of these cases where                                        I. Privacy related
                                                                                                        market failures,
     competition does not discipline market outcomes. Either
     because of informational failures, bounded rationality, or
     a combination of both, most people overlook the privacy
     dimension when comparing among different products
     and services.10 If demand forces do not discipline this                                            competition law,
     product feature, sellers will not compete on providing less
     intrusive data protection standards for their customers.
     Thus, insofar consumers neglect the privacy attribute in
                                                                                                        and market regulation
     their decision-making, actual or potential competition—
     entry—will not discipline this product attribute.                                                  1. Competitive markets, inertia
     4. In this brief note of caution, we focus on the recent
                                                                                                        and informational market failures
     German Facebook case as an example of the challenges                                               5. According to traditional economic theory, absent
     that privacy protection brings to the institutions and the                                         externalities, monopoly power, and information
     enforcement of competition laws. This note offers more                                             asymmetries, the free functioning of markets provides
     questions than answers about the case. Yet, we hope                                                what people want at lowest cost.11 The market mechanism
     that our case analysis will allow a better formulation                                             also sends important information regarding what goods
     of the questions arising from the competition and                                                  and services people value and how much they are willing
     privacy conundrum. In particular, we discuss challenges                                            to pay for them, encouraging the development of products
     dealing with theories of competitive harm that rely on                                             that satisfy unmet needs, improving the alternatives that
     references to fundamental rights and the role and efficacy                                         already exist, or even creating products that set new
     of competition law remedies. We structure this note as                                             standards. In this sense, competition is a “discovery
     follows: Section I reviews the rationales for regulation and                                       process.”12 The coordination of autonomous actors
     the conventional scope of competition laws. This section                                           driven by their self-interest typically leads to efficient
     may seem basic, but it explains why data exploitation                                              outcomes. This resembles the ordoliberal foundations
     is unlikely to be a good target for competition law                                                of competition law that builds on the freedom of choice
     enforcement. Section II summarizes and analyzes                                                    as an individual expression of economic preferences.13
     the recent German antitrust case against Facebook.                                                 Yet negative externalities, such as pollution, lead to an
                                                                                                        excessive production of goods. To equal the private cost
                                                                                                        of pollution to its social cost, regulatory intervention is
                                                                                                        needed. Poor information also requires legal intervention
     8  J. E. Stiglitz, Economics of the Public Sector, 3rd Revised edition (W. W. Norton &
         Company, 2000).
                                                                                                        as it can lead people to enter into deals that are not
                                                                                                        beneficial for them.14 Furthermore, self-control problems
     9  For instance, there is consensus that food quality has not improved throughout the years
         despite competition. S. M. Krebs-Smith, J. Reedy, and C. Bosire, Healthfulness of the U.S.
                                                                                                        lead to similar outcomes.15
         Food Supply: Little Improvement Despite Decades of Dietary Guidance, American Journal
         of Preventive Medicine 38, No. 5 (May 1, 2010): 472–77, https://doi.org/10.1016/j.
         amepre.2010.01.016. If most consumers prefer tasty Cheetos over a healthier alternative,
         the market will produce the less healthy option to give consumers what they want. This is,
         of course, an oversimplification since consumers are heterogeneous and there is enough
         demand for healthy food to secure the existence of such a market. Nonetheless, obesity
         may well be a market failure, and while some regulatory strategies have intended to make       11 
                                                                                                           See, e.g., W. Kip Viscusi, J. E. Harrington, D. E. M. Vernon, Economics of Regulation and
         the “healthy” or “nutritional quality” attribute more salient for consumers, and thus             Antitrust, 4th edition (The MIT Press, 2005), 377; Stiglitz, supra note 8, 63.
         improve their ability to make decisions more consistent with their long-term goals, this is
         not a problem that is properly addressed by competition laws. Unfortunately, regulatory        12 Snow, supra note 7, 9–23.
         simplification strategies have shown that complex problems are unlikely to be solved easily.   13 W. Eucken, Die Grundlagen der Nationalökonomie (1947, 9th edition, Springer-Verlag,
         See, O. Vásquez Duque, The Non-Trivial Regulation of Nutrition Labels: An Exploratory              1989), 275, 313.
         Analysis of the Chilean Experience, SSRN Scholarly Paper (Social Science Research
         Network, February 8, 2018), https://papers.ssrn.com/abstract=3120696.                          14 R. Korobkin, Bounded Rationality, Standard Form Contracts, and Unconscionability,
                                                                                                            The University of Chicago Law Review 70, No. 4 (2003): 1203–95.
     10 See, e.g., P. A. Norberg, D. R. Horne, and D. A. Horne, The Privacy Paradox: Personal
         Information Disclosure Intentions versus Behaviors, Journal of Consumer Affairs                15 See, e.g., T. O’Donoghue and M. Rabin, Doing It Now or Later, The American
         41, No. 1 (2007): 100–26, https://doi.org/10.1111/j.1745-6606.2006.00070.x.                        Economic Review 89, No. 1 (March 1, 1999): 103–24; T. O’Donoghue and M. Rabin,
         S. Kokolakis, Privacy attitudes and privacy behaviour: A review of current research on the         Present Bias: Lessons Learned and to Be Learned, The American Economic Review
         privacy paradox phenomenon Computers & Security 64 (2017): 122–34; L. Brandimarte                  105, No. 5 (2015): 273–79, D. Laibson, Golden Eggs and Hyperbolic Discounting,
         and A. Acquisti, The Economics of Privacy, in The Oxford Handbook of the Digital                   The Quarterly Journal of Economics 112, No. 2 (May 1, 1997): 443–78, https://doi.
         Economy, M. Peitz and J. Waldfogel, eds. (Oxford University Press, 2012), 1, 14.                   org/10.1162/003355397555253.

76   Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?
6. Monopoly power produces higher prices or lower                                                     firms that exploit consumers’ imperfect information,

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quality than what a consumer would see in a competitive                                               bounded rationality, and self-control survive in a

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market. Monopoly power is, however, more than market                                                  competitive equilibrium.21 The solutions to these market
power.16 The latter is pervasive. In fact, most producers                                             failures are difficult to design and implement. Often, they
of differentiated products enjoy some degree of market                                                require industry-specific knowledge and the formulation
power. Monopoly power, in contrast, is the ability of a                                               of tailored legal mandates to protect a heterogeneous
firm to impair competition, turning conduct that would                                                pool of consumers.
be irrational for firms in a relatively competitive market—
such as excluding competitors by charging prices below
cost—into rational business strategies.17 Usually, under                                              2. A basic model of market
a legal analysis, the starting point for an inference of
monopoly power consists of high barriers to entry plus                                                failure stemming from
high market shares. Monopolists benefit at the expense                                                imperfect information
of consumers and society as a whole, since monopoly
power comes with static and dynamic inefficiencies.                                                   9. Let’s denote the demand for a product as d. Consumer
                                                                                                      i has two alternatives: (i) product “good” and (ii) product
7. Competition laws prevent the unlawful acquisition                                                  “not-so-good.” Each product has several attributes: ag1,a
and/or exercise of monopoly power by prohibiting                                                         …agn and ansg1, ansg2…ansgn. Naturally, each product has
                                                                                                      g2
anticompetitive agreements and joint ventures,                                                        a price: Pg and pnsg, respectively. A rational and well-
mergers that substantially lessen competition, as well
                                                                                                      informed consumer will assign a value to each attribute,
as the exclusion of reasonably (or equally) efficient
                                                                                                      which would yield the benefit of each product: vg and vnsg.
competitors. The direct exploitation of a monopoly
against consumers is a matter of debate, yet legislation in                                           Such a consumer, as long as she does not face budget or
several jurisdictions regards excessive or abusive pricing                                            other types of constraints, will prefer the “good” product
as an antitrust offense.18 Antitrust remedies put an end to                                           if: vig – pg > vinsg – pnsg. Choosing the “not-so-good”
the abusive conduct or forbid the creation of monopoly                                                product may be rational but this depends on consumers’
power ex ante, in addition they serve as deterrents.19                                                preferences as well as their budget.
If there are high entry barriers in a market and only a
handful of competitors, merger control should forbid                                                  10. Let’s assume now that consumers are not well informed
the acquisition of actual or potential competitors. If two                                            or that for whatever reason (e.g., it is costly to assess each
competing firms fix the prices of their goods or allocate                                             option and compare with competing alternatives) they
exclusive territories to each other, the firms will have to                                           overlook an important product attribute and believe the
pay high fines and in many countries the managers who                                                 price they pay is lower than it really is (the perceived price
were involved in the offense would have to serve some                                                 is denoted as pg thus pg> pg). For instance, when choosing
time behind bars.                                                                                     a credit card, consumers may neglect the interest rates
                                                                                                      and focus mostly, or exclusively, on the annual fees.22 For
8. But what should competition law do if poor regulation                                              some, usually sophisticated, this would make sense since
leads firms to use dirty energy sources in order to charge                                            the probability of missing a payment might be very low.
prices as low as possible? Or when consumers are ill-                                                 So, the more important case is that of those consumers
informed, which induces sellers to supply services or                                                 who face a non-negligible probability of missing a
goods that appear to be more convenient than they really                                              payment and yet overlook the high-interest rates.
are? This piece focuses on the latter case. Competition
laws protect the free functioning of markets. Many                                                    11. Banks may offer different combinations of fees.
times, free and competitive markets lead to undesirable                                               In fact, if the market is competitive, banks may choose
results.20 When consumer demand is a function of poor                                                 any combination of c and f that covers their costs.
information or behavioral biases, competitive pressures                                               When consumers consider both c and f, the market will
tend to lead sellers to exploit consumers’ misperceptions                                             provide levels of both that reflect the actual preferences
and biases. Actually, under reasonable assumptions, only                                              of consumers. Yet if consumers overlook the interest fee,
                                                                                                      the banks will offer contracts with very low or even zero
                                                                                                      salient prices (f) and high non-salient prices (c). Since
                                                                                                      consumers base their decisions mainly or exclusively on
16 D. W. Carlton and J. M. Perloff, Modern Industrial Organization, 4th Global Edition
    (Pearson/Addison Wesley, 2015), 117, 687.
                                                                                                      f, competition is distorted. This is because competition
                                                                                                      occurs only with respect to f, leaving room for sellers to
17 E. Elhauge and D. Geradin, Global Antitrust Law and Economics, 3rd edition (Founda-
    tion Press, 2018), 320–21.
                                                                                                      backload the real price of their goods to c. Furthermore,
                                                                                                      since c is non-salient, the banks may increase the total
18 Ibid. chap. 3.

19 See, e.g., A. Douglas Melamed, Afterword: The Purposes of Antitrust Remedies, Antitrust
    Law Journal 76, No. 1 (2009): 359–68; W. P. J. Wils, Relationship between Public
    Antitrust Enforcement and Private Actions for Damages, World Competition 32, No. 1
    (2009): 3–26.                                                                                     21 Bar-Gill, supra note 5, chap. 1.

20 As Shiller and Akerlof note: “Free markets are products of peace and freedom, flourishing         22 We base this example on those provided by Oren Bar-Gill in a consumer contracts context.
    in stable times when people do not live in fear. But the same profit motive that produced those       See, O. Bar-Gill, Consumer Transactions, in The Oxford Handbook of Behavioral Economics
    boxes that opened and gave us something we wanted has also produced slot machines with                and the Law, E. Zamir and D. Teichman, eds. (Oxford University Press, 2014), 465–90,
    an addictive turn of the wheel that takes your money for the privilege.”Akerlof and Shiller,          http://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780199945474.001.0001/
    supra note 5, p ix-x.                                                                                 oxfordhb-9780199945474-e-018.

                         Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?                              77
cost to non-competitive levels.23 This finding is far from                                        14. To begin with, are these competition law cases?

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     being new. From a neoclassical perspective, Carlton and                                           The main source of market power that allows sellers

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                                                                                                                                                                                                         L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document
     Perloff point out that: “The full-information, competitive                                        to adopt intrusive privacy policies is an informational
     price equilibrium is not an equilibrium when consumers                                            issue (and probably inertia as well). The market may
     have limited information about price and positive search                                          have several suppliers, which might offer homogeneous
     costs.”24 Why? Imagine each individual faces a search                                             products at the eyes of consumers (e.g., email providers,
     cost of s, a competitive price is pc. Buyers suspect they                                         even cell-phone networks). If there were a monopolist,
     can find pc somewhere with a low probability but, as                                              entry would not discipline the privacy attribute since
     indicated, finding such a price entails a search cost of s.                                       competition would occur only over the attributes that
     Then, each seller could increase her price as long as the                                         consumers care about (which is revealed by consumers’
     new price pn is lower than pc + s. As search costs increase,                                      actual behavior, not by their stated preferences).
     sellers may rationally raise their prices even reaching the                                       Furthermore, what competition law remedy may fix this
     monopoly price.25                                                                                 problem? Obligations to disclose the average hidden
                                                                                                       costs? Generic mandates to offer a fair contract, more
     12. There are different possible outcomes when some                                               options, or a general ban of abusive terms?
     consumers are well informed.26 If many consumers are
     informed, then firms may charge the competitive price.27                                          15. Some have suggested considering data exploitation
     But this depends on a crucial trade-off: charging higher                                          as an abusive price. Yet in excessive pricing cases, the
     prices entails losing the demand of informed consumers                                            plaintiff bases her position on a competitive benchmark.
     and keeping the demand of uninformed consumers for                                                If the goods or services in the benchmark market are
     whom the price difference is lower than their search costs,                                       similar to the one that is the object of the trial, then direct
     assuming they have the expectation of finding a lower                                             price regulation overcomes an important informational
     price at a cost of s. In repeated transactions, inertia poses                                     challenge. In fact, the existence of a competitive
     another search cost.28                                                                            benchmark stems from the fact that competition does
                                                                                                       discipline net prices in the benchmark market. What is
     13. The case of privacy is similar to the credit cards                                            the benchmark when sellers exploit consumers’ lack of
     example from above. Privacy is a product attribute.                                               information, and/or their imperfect rationality and their
     For simplicity, let’s assume digital products have only                                           inertia and this is a generalized practice (an equilibrium)?
     three attributes: price (p), connectivity (b), and privacy                                        This point is developed in further detail in paragraph 26.
     intrusion (h). If consumers do not ponder the privacy
     attribute h in their decision-making, platforms will
     exploit such attributes, extracting all the value they can,
     which allows them to subsidize the nominal price of the                                           II. The privacy paradox
                                                                                                       and the German
     product. While the real price consumers pay is p + h,
     poorly informed consumers believe the price they pay is
     only p (or more optimistically a value lower than p + h
     but not close enough to demand a different alternative).
     Sellers will compete offering low perceived prices (p) and                                        Facebook case
     connectivity (b) that satisfies their customers. This is the                                      16. Germany has been a pioneer jurisdiction in enforcing
     competitive benchmark we believe should be applicable                                             antitrust laws against the alleged privacy-intrusive
     to the Facebook case. What can we do to solve problems                                            conduct of digital platforms. Most recently, in the
     like these in which market prices and/or quality are not                                          Facebook judgment, the German Federal Supreme
     disciplined by demand forces?                                                                     Court backed the Federal Cartels Office decision29 that
                                                                                                       considered Facebook’s current data policy as an abuse of
                                                                                                       dominance under German Competition Law.30 The court
                                                                                                       preliminary held that Facebook’s terms and conditions
     23 S. P. Anderson and R. Renault, Pricing, Product Diversity, and Search Costs: A Bertrand-
         Chamberlin-Diamond Model, The RAND Journal of Economics 30, No. 4 (1999):                     illegally enabled it to use aggregated data from its
         719–35.                                                                                       network and combine it with other “Off-Facebook-data”
     24 D. W. Carlton and J. M. Perloff, Modern Industrial Organization (Pearson/Addison Wesley,      from other social networks that belong to Facebook
         2005), 478.                                                                                   (e.g., WhatsApp and Instagram), as well as third-party
     25 Based on Carlton and Perloff, Modern Industrial Organization, 478. Given the length           websites and apps to provide user-centric services and
         of this piece we may not develop the interesting differences regarding the rationales         better sell the attention of consumers to advertisers.
         and strategies for regulating traditional and behavioral market failures. Yet, as Doug
         Melamed told us, this difference is crucial. For instance, privacy costs may be overlooked
                                                                                                       This “imposed personalized experience,”31 the court
         because of hyperbolic discounting. If this were the case, traditional tools to overcome       outlined, may lead consumers to succumb to intrusive
         informational failures would be ineffective,                                                  practices by consciously or subconsciously giving up
     26 Salop and Stiglitz’s article is an important reference in this respect. They also summarize   their sovereignty over their privacy or their right to
         the previous literature. See S. Salop and J. Stiglitz, Bargains and Ripoffs: A Model of
         Monopolistically Competitive Price Dispersion, The Review of Economic Studies 44,
         No. 3 (1977): 493–510, https://doi.org/10.2307/2296903.

     27 Carlton and Perloff. p. 483. This is based on P. A Diamond, A Model of Price                  29 BKartA WuW 2019, 277 = BeckRS 2019, 4895.
         Adjustment, Journal of Economic Theory 3, No. 2 (June 1971): 156–68, https://doi.
         org/10.1016/0022-0531(71)90013-5.                                                             30 It has to be noted that it is still a summary proceeding and thus is not only a preliminary
                                                                                                           ruling, it also has a lower standard of proof.
     28 See, e.g., A. MacKay and M. Remer, Consumer Inertia and Market Power (April 29,
         2019), available at SSRN: http://dx.doi.org/10.2139/ssrn.3380390.                             31 BGH GRUR 2020, 1318 para. 58 – Facebook.

78   Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?
informational self-determination. Such conduct may                                              19. According to Article 19(2) Nr. 2 GWB, an abuse of

                                                                                                                                                                                                       constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection.
further imperil competition in the social communication                                         a dominant position exists “if a dominant undertaking

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                                                                                                                                                                                                       L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document
and the advertisement selling markets. Notably, the court                                       demands (. . .) business terms which differ from those which
developed a new theory of harm that deviated from the                                           would very likely arise if effective competition existed; in
Federal Cartel Office’s reasoning in two ways. First the                                        this context, particularly the conduct of undertakings in
court abandoned the excessive pricing rationale that was                                        comparable markets where effective competition exists
the lynchpin of the Federal Cartel Office’s argumentation.                                      shall be taken into account.” The offense thus has to be
Second, the court based its reasoning on data-specific                                          a consequence of the firm’s market power (causality
exclusionary abuse considerations.32                                                            stricto sensu). The preceding point means that consumers
                                                                                                would benefit from higher privacy protection standards
                                                                                                if the market was competitive. Yet, the Federal Court
1. Breach of informational                                                                      of Justice quite extraordinarily attenuated the strict
                                                                                                causality requirement by referring to the general clause of
self-determination as an abuse                                                                  Article 19(1) GWB,37 outlining that it sufficed that consumer
of dominance                                                                                    harm could only arise in the case of market-dominant
                                                                                                companies. This was despite the fact that it was clear in the
17. The court reasoned that Facebook’s market dominance                                         discussion that data-specific abuses were possible for any
and the pivotal role of social communication services                                           business, including non-dominant firms.38 Accordingly,
in daily lives leave consumers without any real choice                                          the court analyzed the case under a weaker standard of
but accepting Facebook’s terms and conditions in their                                          “as-if competition” (normative causality). This implied
entirety. The fact that consumers give up their data and                                        the assessment of whether the user preferences could be
the imposition of data-driven services—the personalized                                         better realized in a hypothetical competitive market (i.e.,
user experience—were tantamount to exploitation.                                                whether in a hypothetical competitive market rational
Consumers lose their possibility to discipline the market                                       market actors would opt for a less privacy intrusive option
and are left without any choice. Here the court adhered                                         than the one Facebook was offering).39
to the concept of “consumer choice” of Averitt, Lande
and Nihoul as an alternative to the traditional focus of                                        20. The court found such evidence in a market study
competition law on price effects.33                                                             conducted by the Federal Cartel Office. That study
                                                                                                merely asked people whether they would choose less
18. According to the court, the consumers’ fundamental                                          privacy-intrusive services if such options were provided
right of informational self-determination needs to be                                           by Facebook. Not surprisingly, 46% of Facebook-users
considered in Article 19(1) German Antitrust Code                                               answered that they would switch to a less intrusive
(GWB).34 This fundamental right entails a consumer                                              option. Furthermore, 38.5% of Facebook users even
right to—at least—freely determine what information                                             declared that they would pay for a “data light” version
is provided to a third party. The forced personalized                                           of Facebook.40 As it should be evident, the court justified
experience provided by Facebook and the lack of                                                 its decision on a survey concerning consumers’ stated
alternatives available violated such power. The court                                           preferences. This is despite the fact that there are several
rebuffed claimed justifications for Facebook’s data                                             empirical studies demonstrating the divide between
business model due to specific exceptions and limitations                                       people’s stated and revealed preferences regarding their
in the General Data Protection Regulation (GDPR),35                                             privacy. As we explain in the next section, people tend
and reasoned it was obliged to put an end to Facebook’s                                         to report that they care about the personal information
exploitative data practice.36                                                                   they share. However, in reality people undertake little to
                                                                                                protect their data, and act as if they did not care much
                                                                                                (or not care at all) about it.41 This conundrum is called
                                                                                                “the privacy paradox.” A possible explanation is the
                                                                                                naïve trust on survey responses about sensitive topics
                                                                                                that are subject to a social-desirability bias.

32 Ibid., para. 64.
                                                                                                37 BGH GRUR 2020, 1318 para. 81 – Facebook.
33 R. H. Lande and N. W. Averitt, Using the “Consumer Choice” Approach to Antitrust
    Law, Antitrust Law Journal 74, No. 1 (2007): 175–264; P. Nihoul in Choice: A New            38 Ibid.
    Standard for Competition Law Analysis? P. Nihoul, N. Charbit, and E. Ramundo, eds.
    (Concurrences, 2016), 9.                                                                    39 Ibid. The court explicitly outlined that as there never has been proper competition
                                                                                                    in the social communication market it cannot be answered what a counterfactual was.
34 BGH GRUR 2020, 1318, para. 102ff. On the relevance of fundamental rights even                   This fact however, cannot serve as an excuse for Facebook.” In order to meet the causality
    between private actors within Article 19 GWB, see the German Highest Supreme Court              requirement it has to suffice “that there are identifiable user preferences of economically
    in the Pechstein case, BGHZ 210, 292 Rn. 57 – Pechstein and the Highest Constitutional          reasonable consumers. Accordingly, consumers need to have a willingness to make use of
    Court in Stadionverbot, BVerfGE 147, 267 Rn. 41 – Stadionverbot.                                other conditions of use. Such willingness must be based on actual evidence.

35 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April          40 Cf. Question 11, Amtsakte, 682. Cf. BGH GRUR 2020, 1318, para. 85.
    2016 on the protection of natural persons with regard to the processing of personal data.
    The right of self-determination is still applicable in Article 19 GWB and not directly      41 See, S. Barth and M. D. T. de Jong, The Privacy Paradox – Investigating Discrepancies
    circumscribed by the GDPR. As privacy is not considered an absolute right, there are           between Expressed Privacy Concerns and Actual Online Behavior – A Systematic
    certain exceptions and limitations enshrined in the GDPR.                                      Literature Review, Telematics and Informatics 34, No. 7 (November 2017): 1038–58,
                                                                                                   https://doi.org/10.1016/j.tele.2017.04.013; D. J. Solove, A Taxonomy of Privacy,
36 i.e., the status positivus of such rights. See on the scope of the right of informational      University of Pennsylvania Law Review 154, No. 3 (January 2006): 477–560; A. Acquisti,
    self-determination in Germany, Highest Constitutional Court, BVerfG, WRP 2020, 39              Nudging Privacy: The Behavioral Economics of Personal Information, IEEE Security and
    para. 87 – Recht auf Vergessen I. Cf. BGH GRUR 2020, 1318 para. 105 – Facebook.                Privacy 7, No. 6 (2009): 82–85.

                        Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?                            79
2. Excessive aggregation of data                                                                    practice has found such scenarios implausible in several

                                                                                                                                                                                                        constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection.
                                                                                                         cases, and revolved back to the traditional error‑cost
     as a barrier to entry in the social

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                                                                                                         framework. In the Facebook/WhatsApp merger, for
     networks and advertising markets                                                                    instance, the EC cleared the merger and stated that “the
                                                                                                         consumer communications sector is a recent and fast-
     21. As mentioned above, the court also developed an                                                 growing sector which is characterised by frequent market
     exclusionary theory of harm. According to the court, the                                            entry and short innovation cycles (. . .). [I]n this market
     excessive aggregation of data and the gained insights on                                            high market shares are not necessarily indicative of market
     user experiences may ultimately strengthen Facebook’s                                               power and, therefore, of lasting damage to competition.”47
     market power on both sides of the platform. Increased                                               Recent studies, however, have claimed that the predicted
     user experience may directly boost the attention of                                                 market disruptions that favored the hands-off approach
     users in the social network market, which may give                                                  have not occurred.48
     Facebook more—and particularly more accurate
     and comprehensive—information about their users.
     This allows Facebook to sell an unrivaled product to
     advertisers.42 Due to strong indirect network effects
                                                                                                         III. Assessment
     on both sides of the market, Facebook’s personalized
     services are likely to create high entry barriers. In fact,                                         of the German
                                                                                                         Facebook case
     the court, in a similar way to the reasoning of the
     General Court of the Microsoft case,43 reasoned that the
     aggregation of data from multiple sources may position
     Facebook as an incontestable market actor.44                                                        23. A great motivation of the Supreme Court’s judgment
                                                                                                         is to provide more choices for consumers. The court
     22. Accordingly, for the court the object of proof was the                                          seems to believe that there is an intrinsic value in having
     potential negative effects on competition given Facebook’s                                          more choices and that free competition is a silver bullet.
     specific responsibility as a dominant firm.45 This is quite                                         By assuming these two points, the court overlooks what
     extraordinary as such data-specific foreclosure theory                                              experts have called “the privacy paradox” as well as
     of harm has already been subject to scrutiny in the                                                 the very basic taxonomy of market failures presented
     European Commissions’ merger control practice. In fact,                                             in Section I. From a legal perspective, these issues
     the European Commission (EC) has assessed whether the                                               influenced the lower causality threshold adopted by
     concentration of control over valuable and non-replicable                                           the court. Actually, the Federal Supreme Court quite
     data resources may create a significant impediment                                                  bluntly lowered the causality threshold on the grounds
     for competition by either strengthening market power                                                of the justified expectation that rational consumers may
     or leveraging their data advantages to other markets                                                respond to product diversification (...) if competition
     and thus lead to foreclosure effects.46 The EC’s merger                                             was in place.49 This also explains the lower standard of
                                                                                                         proof applied in such case. Yet—and this is what the
                                                                                                         court oversees—its counterfactual is based on several
     42 BGH GRUR 2020, 1318 para. 94 – Facebook. The court explicitly states that the more              unrealistic normative assumptions that lead to inaccurate
         data Facebook gets, the more accurate the predictability of user behavior is. This does         predictions.
         not only allow Facebook to more accurately develop tailored services and personalize
         future or other business strategies and technologies, it also allows Facebook to more
         accurately predict the users’ behavior. The more data in terms of quantity and quality          24. A critical piece of evidence for the court was the
         the better Facebooks’ data analytics. As the number of users is already very large, high        market study conducted by the Federal Cartel Office,
         direct network effects cause barriers to entry for both current and potential competitors
         as they can hardly compete with the offered services and the strong network. In addition
                                                                                                         which showed that people stated that they valued
         to the barrier to entry caused by direct network effects, there is also the risk of market      their privacy and that many were willing to pay for a
         foreclosure on the other side of the platform, i.e. advertising market. Particularly the        less intrusive Facebook version. Many studies have
         advertising market is however required to amortize the costs from the other side of the
         platform, i.e. the social communication service market.                                         documented, however, that in reality people undertake
                                                                                                         little to protect their data, despite the fact that they report
     43 Case T-201/04 Microsoft [2007] ECR II 3602 5 CMLR 11 para. 631.
                                                                                                         caring about their privacy.50 This so-called “privacy
     44 Cf. J. Drexl, Intellectual Property and Sources of Market Power, in Intellectual Property,
         Market Power and the Public Interest, I. Govaere and H. Ullrich, eds. (PIE Peter Lang, 2008),
         13; A. Heinemann, The Contestability of IP-Protected Markets, in Research Handbook on
         Intellectual Property and Competition Law, J. Drexl, ed. (Edward Elgar Publishing 2008), 54–
         79. See Joint Committee of the European Supervisory Authority, Joint Committee Discussion       47 
                                                                                                            Facebook/WhatsApp, supra note 46, para. 99. See also Judgment of the General Court,
         Paper on the Use of Big Data by Financial Institutions (2016) JC 2016 86, 6; J. Hoffmann,          11 December 2013, Cisco Systems and Messagenet v. Commission, Case T-79/12,
         Safeguarding Innovation Through Data Governance Regulation: The Case of Digital                    EU:T:2013:635.
         Payment Services (2020), Max Planck Institute for Innovation and Competition Research Paper
         No. 20-08, 21–26. For a dissenting opinion see A. Lambrecht and C. E. Tucker, Can big data      48 See, J. Crémer, Y. A. de Montjoye, and H. Schweitzer, Competition policy for the digital
         protect a firm from competition?, Competition Policy International (2017).                         era (2019), 49–54; J. Furman, Unlocking digital competition, Report of the Digital
                                                                                                            Competition Expert Panel (2019), 4; Report of the German Competition Commission 4.0,
     45 GRUR 2020, 1318 Rn. 81ff. – Facebook.                                                              Ein neuer Wettbewerbsrahmen für die Digitalwirtschaft (2019), paras. 9–11
     46 See for example Commission decision of 6 September 2018, Case M.8788 – Apple/Shazam,            49 BGH GRUR 2020, 1318 para. 81 – Facebook.
         C(2018) 5748 final; Commission decision of 6 December 2016, Case M.8124 – Microsoft/
         LinkedIn, C(2016) 8404 final; Commission decision of 3 October 2014, Case M.7217                50 See, S. Barth and M. D. T. de Jong, The Privacy Paradox – Investigating Discrepancies
         – Facebook/WhatsApp, C(2014) 7239 final; Commission decision of 4 September                         between Expressed Privacy Concerns and Actual Online Behavior – A Systematic
         2012, Case M.6314 – Telefónica UK/Vodafone, C(2012) 6063 final. Cf. J. Hoffmann and                 Literature Review, Telematics and Informatics 34, No. 7 (November 2017): 1038–58,
         G. Johannsen, EU-Merger Control and Big Data: On Data-specific Theories of Harm and                 https://doi.org/10.1016/j.tele.2017.04.013; D. J. Solove, A Taxonomy of Privacy,
         Remedies (2019), Max Planck Institute for Innovation and Competition Research Paper                 University of Pennsylvania Law Review 154, No. 3 (January 2006): 477–560; Acquisti,
         No. 19-05, 1, 9–29.                                                                                 supra note 41, 82–85.

80   Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?
paradox” casts doubt on what is the actual consumer                                               26. It is important to bear in mind that in excessive

                                                                                                                                                                                                                          constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection.
                     preference that the court should have regarded as the real                                        pricing cases the plaintiff has to refer to one or several

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                                                                                                                                                                                                                          L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document
                     one—aiming to guarantee people’s self-determination,                                              benchmarks.53 For instance, if someone for whatever
                     which sounds like an oxymoron. People say many                                                    reason enjoys a monopoly in funerary services in a small
                     things, but only a few buy fair-trade products, donate to                                         town, which allows her to charge higher prices than
                     charities, and prefer electric or hybrid cars (having the                                         those charged in places where there is competition, the
                     chance to do so). We believe there is a critical experience                                       plaintiff may gather that relevant pricing information
                     that proves that our argument applies to people’s                                                 and argue that the benchmark provides a reasonable
                     privacy: The evolution of DuckDuckGo’s market                                                     comparison to set a fair price.54 While the best remedy
                     share. DuckDuckGo is a search engine that offers high                                             for the medium run may be to introduce competition in
                     privacy standards. As the plot below shows,51 even after                                          the market, issuing a behavioral remedy requiring the
                     being present in the choice screen that resulted from the                                         firm to charge prices above cost and below the monopoly
                     Android case, DuckDuckGo’s market share has not risen                                             price in the meantime would do no harm. This exercise
                     above 1% despite the fact that it is a good alternative to                                        is possible because the source of market power is a
                     more intrusive environments and that it actively displays                                         legal monopoly. Competition works well in this type
                     its commitment with people’s privacy.                                                             of market, where there are no significant informational
                                                                                                                       failures and no externalities. But markets fail for causes
                                        Market Shares Europe 2018 to 2020                                              other than the lack of competition, and when that is
                                                                                                                       the case, competition law usually lacks the institutional
                                                                                                                       competence and erga omnes effects to improve market
Marcket Share in %

                                                                                                                       outcomes. The recent response of Google in Germany,
                                                                                                                       by which it provides a menu of options to its users, may
                                                                                                                       be interpreted as a counterargument to our position.
                                                                                                                       Of course, no one denies that the enforcement of law may
                                                                                                                       have a deterrent effect. However, the services provided
                                                                                                                       by Google are multidimensional and complex. A court
                                                                                                                       may well approve the conditions offered by a firm in
                                                                Year                                                   a potential settlement, or enforcers might interpret a
                                                                                                                       change of conduct as a law-abiding effort. However,
                                                                                                                       courts and general enforcers usually lack the technical
                     25. One of the core rationales of informational self-                                             knowledge to assess the impact of legal remedies. If a
                     determination is to let consumers decide. Yet people’s                                            firm operating in a platform market loses a source
                     lack of reaction towards the status quo is what                                                   of profit, it may well (and probably would) try to
                     has allowed many firms to exploit people’s privacy.                                               compensate for the loss in the other side of the market
                     Regulation for competition (e.g., simplification, standard                                        (e.g., with higher prices for advertisers, a part of which
                     setting, interoperability) may be a reasonable alternative.                                       would be passed on to their consumers) or in a related
                     But thoughtful efforts to change the status quo for the                                           market. What is the net effect of the intervention? This is
                     better need good information about the causes of the                                              a reason why a sound prediction and assessment of the
                     problem and possible alternatives, as well as general                                             remedies is critical. If a data sharing remedy was offered,
                     effects. For instance, why has not DuckDuckGo increased                                           it would be hard to predict whether merely sharing
                     its market share? Is it because the choice screen is poorly                                       information would effectively restore competition in
                     designed? Because advertising new search engines is too                                           the market. Actually, dominance may stem from critical
                     difficult/costly? Because for some reason the dominant                                            infrastructure—i.e. data scientists, other data sources,
                     firm has an advantage that is not replicable by the                                               machine learning models, etc. This knowledge however
                     entrants, which makes it unfeasible for them to provide                                           is the key competitive factor in the data related theory of
                     a product that is as good as the incumbent’s? If sound                                            harm that the Supreme Court addressed.
                     answers are found, how can the solution be implemented
                     obliging all market actors and not only the defendant?
                     This may bring back the discussion on paternalistic
                     market regulation, which has already been envisioned in
                     the Digital Markets and Digital Services Acts.52

                                                                                                                       53 M. de la Mano, R. Nazzini, and H. Zenger, Article 102, in The EU Law of Competition, J.
                     51 This is based on O. Vásquez Duque, Forced Choice vs. Inertia? An Exploratory Analysis of          Faull and A. Nikpay, eds., 3rd ed. (Oxford University Press, 2014), 329–538; O. Vásquez
                         Choice Screens Applied in the European Microsoft Antitrust Case, draft on file with author.       Duque, Excessive Pricing: A View from Chile, The University of Oxford Centre for
                                                                                                                           Competition Law and Policy Working Paper CCLP L 41 (April 8, 2015), available at:
                     52 Cf. Proposal for a Regulation on a Single Market For Digital Services (Digital Services           https://dx.doi.org/10.2139/ssrn.2591931.
                         Act) COM/2020/825 final; Proposal for a Regulation on contestable and fair markets in
                         the digital sector (Digital Markets Act), COM/2020/842 final.                                 54 Corinne Bodson v. SA Pompes funèbres des régions libérées, 1998 ECR 2479 (1998).

                                             Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?                          81
IV. Conclusion                                                                       privacy-related market failures that stem from a lack of

                                                                                                                                                                                         constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection.
                                                                                          consumer engagement and informational deficiencies.55

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                                                                                                                                                                                         L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document
                                                                                          Horizontal regulation has erga omnes effects and
     27. Competition law is not a silver bullet. Enhancing                                regulators tend to have market-specific knowledge, which
     privacy protection by means of enforcing competition                                 is critical to properly regulate a complex set of related but
     law has already been claimed as a political stance that                              distinct markets. Competition laws may have deterrence
     goes beyond traditional antitrust reasoning. Of course,                              effects. Yet, the dependency on market dominance that
     there is nothing wrong in thinking outside of the box,                               has to be assessed by competition authorities may create
     but for regulation, either direct or indirect, to work                               considerable legal uncertainty, including the risk of
     well, the regulator has to count on good information                                 opinions based on naive accounts of people’s behavior and
     and issue general mandates. We argue that privacy-                                   poor empirical evidence. This can be seen in the German
     related exploitative abuses can hardly be dealt with by                              Facebook case, especially when assessing the causal
     competition remedies. As consumers usually act as if they                            relationship between Facebook’s dominant position and
     did not value their privacy, market responses that neglect                           its ability to provide tailored services to its users.
     the privacy paradox are likely to fail to improve the
     current status quo. Actually, because privacy exploitation                           29. Notwithstanding the above, by defining a new theory
     is better explained by informational failures, there is                              of harm that builds on exclusionary abuse considerations,
     no legal causality between the defendant’s dominance                                 the German Supreme Court has paved the way for a more
     and intrusive privacy practices. Furthermore, since a                                coherent and dogmatically well-aligned competition law
     competitive market is unlikely to police the privacy                                 solution to tackle the data exploitation. This goes in line
     attribute, it is impossible to see a benchmark in the real                           with the current legislative platform regulation endeavors
     world. The German Supreme Court built its reasoning                                  on a European and German level. Thereby, the German
     on a hypothetical ideal market in which consumers value                              Supreme Court decision certainly backs these current
     having the chance of choosing a less intrusive social                                legislative actions and pioneers in strengthening the
     network. Nevertheless, the privacy paradox is such                                   contestability of digital markets. More importantly,
     because people’s stated preferences are in contradiction                             however, the Supreme Court sets the scene for a new
     with their actual behavior. Actively engaging consumers                              theory of harm that overcomes existing deficiencies in
     may indeed be the right way forward, and regulation                                  data-specific exploitative abuse considerations. Such
     may make competition more viable (for instance, by                                   theory of harm may also have to be looked at in merger
     mandating the interoperability of networks and assuring                              control cases. It remains to be seen how the court will
     a privacy protection floor).                                                         eventually decide in its main proceedings and how the
                                                                                          Digital Services and Digital Markets Acts address the
     28. Despite being critical of the German Facebook case,                              data specific theory of harm. Either way, the German
     we do think that privacy protection is important. Yet the                            Facebook case will be at the forefront of the debate on
     determination of the proper scope of people’s privacy                                the limits of competition law and will be important to
     and informational self-determination should be left to                               shed light on the legislative procedure of the European
     horizontal regulation like ad hoc privacy instruments.                               and German digital laws, which are likely to affect other
     Privacy regulators are better equipped to address the                                jurisdictions worldwide. n

                                                                                          55 Cf. A. Fletcher, Disclosure as a tool for enhancing consumer engagement and competition,
                                                                                              Behavioural Public Policy (Cambridge University Press, 2019), 4.

82   Concurrences N° 1-2021 I Law & Economics I Jörg Hoffmann, Omar Vásquez Duque I Can data exploitation be properly addressed by competition law?
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