Enhancing Competition with Data and Identity Portability
Users contribute information to many digital platforms. Regulators have recognized that when such data cannot be easily moved between platforms, this may lock those users in to incumbents and prevent innovative competitors from emerging. Gans argues that the same type of barriers exists with respect to networks of users. Users who move between platforms could lose the benefits of communications within their social network. He proposes to generalize data portability to a broader notion of identity portability whereby messages between verified connections can flow between platforms, thereby mitigating these broader switching costs and promoting competition.