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Why Some Companies Restrict Data Access to Reduce Competition and How Open APIs Can Help

Center for Data Innovation: Blocked: Why Some Companies Restrict Data Access to Reduce Competition and How Open APIs Can Help, By Daniel Castro and Michael Steinberg | November 6, 2017.  Over the past few years, some scholars, advocates, and policymakers have argued that businesses which possess large quantities of data, such as social media companies, present inherent competition concerns.  These concerns are misplaced for a number of reasons, one being that competitors can often obtain similar data from other sources. But in some industries and markets, a small number of firms have exclusive access to particular datasets, and they exploit their market power to limit access to that data through both technical and administrative means without any legitimate business justification. This type of anti-competitive behavior limits innovation and hurts consumers, and when these problematic practices occur, policymakers should intervene.”

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