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Interoperability in the digital economy

Author

Listed:
  • Wolfgang Kerber

    (University of Marburg)

  • Heike Schweitzer

    (Freie Universität Berlin)

Abstract

Interoperability has become a buzzword in European policy debates on the future of the digital economy. In its Digital Agenda, the EU Commission has identified a lack of interoperability as one of the significant obstacles for the thriving of the digital economy. The EU Commission and a number of other actors have advocated far-reaching policies for ensuring the interoperability of digital goods, services, platforms and communication networks. In this paper, we present a systematic framework for discussing interoperability problems from an economic and legal perspective and apply it to several interoperability issues, as, e.g., standardization, interoperability regulation in the field of electronic communication, duties of dominant firms (including platforms) to ensure horizontal and vertical interoperability and IP law exceptions in favour of interoperability. The complex trade-offs between benefits and costs of a higher degree of interoperability suggest the need for a careful and separate analysis of each specific interoperability issue, caution regarding a (top down) imposition of mandatory standards and interoperability obligations, and a greater focus on unilateral solutions of interoperability problems, like adapters or converters. EU competition law may be better advised to develop, within the framework of Art. 102 TFEU, a workable test to address hurdles for unilateral interoperability solutions created by dominant firms, than to continue focusing on the essential facilities doctrine to mandate interoperability.

Suggested Citation

  • Wolfgang Kerber & Heike Schweitzer, 2017. "Interoperability in the digital economy," MAGKS Papers on Economics 201712, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:201712
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    File URL: https://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2017/12-2017_kerber.pdf
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    Citations

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    Cited by:

    1. Farkas, Beáta & Pelle, Anita & Somosi, Sarolta, 2023. "Az Európai Unió és a geoökonómiai kihívások - ipar- és versenypolitikai válaszok [The European Union and geoeconomic challenges: industrial and competition policy responses]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1193-1212.
    2. Budzinski, Oliver, 2017. "Wettbewerbsregeln für das Digitale Zeitalter - Die Ökonomik personalisierter Daten, Verbraucherschutz und die 9. GWB-Novelle," Ilmenau Economics Discussion Papers 108, Ilmenau University of Technology, Institute of Economics.
    3. Daniel Rubinfeld, 2024. "Data portability and interoperability: An E.U.-U.S. comparison," European Journal of Law and Economics, Springer, vol. 57(1), pages 163-179, April.
    4. Budzinski, Oliver & Kuchinke, Björn, 2018. "Modern industrial organization theory of media markets and competition policy implications," Ilmenau Economics Discussion Papers 115, Ilmenau University of Technology, Institute of Economics.
    5. Wolfgang Kerber, 2019. "Data-sharing in IoT Ecosystems from a Competition Law Perspective: The Example of Connected Cars," MAGKS Papers on Economics 201921, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Oliver Budzinski & Annika Stöhr, 2019. "Competition policy reform in Europe and Germany – institutional change in the light of digitization," European Competition Journal, Taylor & Francis Journals, vol. 15(1), pages 15-54, January.
    7. Budzinski, Oliver & Gruésevaja, Marina & Noskova, Victoriia, 2020. "The economics of the German investigation of Facebook's data collection," Ilmenau Economics Discussion Papers 139, Ilmenau University of Technology, Institute of Economics.
    8. Lenz, Fulko, 2020. "Plattformökonomie – zwischen Abwehr und Wunschdenken," Zeitthemen 03, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    9. Jorg J. Dotsch & Tamas Ginter, 2024. "Complementing Money Functions: Central Bank Digital Currencies and Currency Competition," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 23(1), pages 50-75.
    10. Arnold, René & Schneider, Anna & Lennartz, Jonathan, 2020. "Interoperability of interpersonal communications services – A consumer perspective," Telecommunications Policy, Elsevier, vol. 44(3).

    More about this item

    Keywords

    interoperability; standards; digital economy; digital goods; platforms; communication networks;
    All these keywords.

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