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JRC study: Business-to-Business data sharing

  • 23 July 2020
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CERRE’s Academic Director, Alexandre de Streel (University of Namur), contributed to a paper for the European Commission’s Joint Research Centre: “Business-to-Business data sharing: An economic and legal analysis”.

This report examines the obstacles to Business-to-Business (B2B) data sharing. For this purpose, it starts from the economic characteristics of data and explores to what extent private B2B data markets result in a socially optimal degree of data sharing, or whether there are market failures in data markets that might justify public policy intervention. It examines the conditions under which monopolistic data market failures may occur. It contrasts these welfare losses with the welfare gains from economies of scope in data aggregation in large pools. It also discusses other potential sources of B2B data market failures due to negative externalities, risks and transaction costs and asymmetric information situations.

The paper explores solutions to overcome these market failures: private third-party data intermediaries may be in a position to overcome market failures due to high transactions costs and risks. They can aggregate data in large pools to harvest the benefits of economies of scale and scope in data. Where third-party intervention fails, regulators can step in, with ex-post competition instruments and with ex-ante regulation.

This report is published as the European Commission recently announced its intentions to propose a legislative framework for the governance of common European data spaces, to review and operationalise data portability, to prioritise standardisation activities and foster data interoperability and to clarify usage rights for co-generated IoT data.

The Commission’s Data Strategy starts from the premise that there is not enough data sharing and that much data remain locked up and are not available for innovative re-use. The Commission will also consider the adoption of a New Competition Tool as well as the adoption of ex-ante regulation for large online gatekeeping platforms as part of the announced Digital Services Act Package.

Access the JRC report.

Document(s)
2020 JRC B2B Data Sharing
Author(s)
Alexandre De Streel
Alexandre de Streel
CERRE Academic Co-Director
Professor of EU Law, University of Namur

Alexandre de Streel is Academic Co-Director at CERRE and a professor of European law at the University of Namur and the Research Centre for Information, Law and Society (CRIDS/NADI). He is a Hauser Global Fellow at New York University (NYU) Law School and visiting professor at the European University Institute, SciencesPo Paris and Barcelona Graduate School of Economics, and also assessor at the Belgian Competition Authority.

His main areas of research are regulation and competition policy in the digital economy as well as the legal issues raised by the developments of artificial intelligence. Recently, he advised the European Commission and the European Parliament on the regulation of online platforms.

Previously, Alexandre worked for the Belgian Deputy Prime Minister, the Belgian Permanent Representation to the European Union and the European Commission (DG CONNECT). He holds a Ph.D. in Law from the European University Institute and a Master’s Degree in Economics from the University of Louvain.

Lauriane Giet
Lauriane Giet
Senior Manager
Communications

Lauriane was Senior Manager for Communications at the Centre on Regulation in Europe (CERRE) from April 2018 to December 2020. She led all aspects of the think tank’s communication, including relations with the press, online and offline communications.  

Previously in her career, Lauriane worked with Burson-Marsteller (BCW), a leading public relations firm, where she specialised in science and political communication. She has worked on numerous communication campaigns at UN, EU and national levels with a focus on Corporate Social Responsibility. 

She holds a Master in public relations and crisis communication from the IHECS (Institute for Higher Social Communication Studies). 

For media inquiries or requests regarding events or partnerships, you can reach us at info@cerre.eu

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