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Sharing Data and Privacy in the Platform Economy: The Right to Data Portability and “Porting Rights”

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Regulating New Technologies in Uncertain Times

Part of the book series: Information Technology and Law Series ((ITLS,volume 32))

Abstract

This chapter analyses the right to data portability and its peculiarities in the platform economy, where this right is fundamental for competition law, users’ protection and privacy, because of the presence of strong direct and indirect network effects and consequent high switching costs. In particular, it analyses the right to data portability as set out in the GDPR, together with the interpretation given by the Article 29 Working Group, and the other “porting rights” in the Digital Single Market strategy and in the European Commission Proposals “for a Regulation on a framework for the free flow of non-personal data in the European Union”, “for a Regulation on promoting fairness and transparency for business users of online intermediation services” and in the proposed “Directive on certain aspects concerning contracts for the supply of digital content”. It underlines six critical issues related to the right to data portability: (1) a privacy issue, due to the huge sharing of data of other individuals; (2) the need to establish the portability of non-personal data; (3) the need to establish the portability for professional users that are not natural persons; (4) the need to protect the rights of the controller and his investment when data is not merely collected but also reworked; (5) the risk of decreased competition with a strong and non-scalable regulation; (6) the necessity to pay attention to the technical solutions available in order to assure practicable application methods, in particular considering the needs of smaller operators.

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Notes

  1. 1.

    Benkler 2006.

  2. 2.

    European Commission 2014a.

  3. 3.

    Boyd and Ellison 2007.

  4. 4.

    European Commission 2014b.

  5. 5.

    European Commission 2015, Article 3.1; EDPS 2014, 2016a; Resta 2018; Colangelo and Maggiolino 2017.

  6. 6.

    EDPS 2014; European Commission 2017a.

  7. 7.

    Evans et al. 2011; Frank 2014.

  8. 8.

    Stucker and Grunes 2016; Graef 2015; EDPS 2016a.

  9. 9.

    It is estimated that around 60% of private consumption and 30% of public consumption of goods and services related to the total digital economy are transacted via online intermediaries. European Commission 2018a.

  10. 10.

    Evans et al. 2011.

  11. 11.

    The present analysis is limited to these two types of platforms here described and it not includes search engine, because in the opinion of the writer in the latter case there are substantial difference. In particular, the content listed by the search engine is not created on the “search engine platform” but it’s only a second representation and organisation of a content published in another website. Furthermore, in the case of search engine the user’s profile has a different and lower importance, based on the creation of the filter bubble rather than on the public representation of the user.

  12. 12.

    European Commission 2018a.

  13. 13.

    The term “platform economy” is here used to refers to social media platform and exchange platforms, as mentioned and described above.

  14. 14.

    “Big Data” are commonly defined by the use of the three “V” (or sometimes four or five): volume, variety (which refers to mostly unstructured data sets from sources as diverse as web logs, social media, mobile communications, sensors and financial transactions) and velocity (or the speed at which data is generated, accessed, processed and analysed). The definition is still vague and “the problem still with the 3Vs and similar definitions is that they are in continuous flux, as they describe technical properties which depend on the evolving state of the art in data storage and processing”. See also OECD 2014. More simply, in the words of Viktor Mayer-Schönberger and Kenneth Cukier, “big data refers to things one can do at a large scale that cannot be done at a smaller one, to extract new insights or create new forms of value, in ways that change markets, organizations, the relationship between citizens and governments, and more”. See also Mayer-Schönberger and Cukier 2013.

  15. 15.

    Engels 2016.

  16. 16.

    Stucker and Grunes 2016.

  17. 17.

    European Commission 2017a.

  18. 18.

    Stucker and Grunes 2016.

  19. 19.

    European Commission 2016.

  20. 20.

    The term “user protection” is used instead of “consumer protection” because in the case of the users of these platforms there is a lack of negotiating power not only for the contract between consumers and the platform, but also for contracts between the platform and professional users.

  21. 21.

    Vanberg et al. 2017; Graef et al. 2014; Engels 2016; Graef 2015; Lynskey 2017; Graef 2016; Colangelo and Maggiolino 2017.

  22. 22.

    Also the OECD underlined that “The monetary, economic and social value of personal data is likely to be governed by non-linear, increasing returns to scale. The value of an individual record, alone, may be very low but the value and usability of the record increases as the number of records to compare it with increases. These network effects have implications for policy because the value of the same record in a large database could be much more efficiently leveraged than the same record in a much smaller data set. This could have implications for competition and for other key policy items such as the portability of data”. See OECD 2013.

  23. 23.

    European Commission 2018b.

  24. 24.

    Ibid. Data sharing and re-use can be generally understood as making data available to or accessing data from other companies for business purposes; European Commission 2018c.

  25. 25.

    Article 29 Working Party 2017.

  26. 26.

    Belli and Zingales 2017.

  27. 27.

    Buttarelli 2017. See also Floridi 2016; Lynskey 2015; UNESCO 2016.

  28. 28.

    As established in Article 4 of the GDPR, “personal data” means any information relating to an identified or identifiable natural person (‘data subject’); an identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person; “processing” means any operation or set of operations which is performed on personal data or on sets of personal data, whether or not by automated means, such as collection, recording, organisation, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure or destruction.

  29. 29.

    Article 29 Working Party 2017.

  30. 30.

    Ibid.

  31. 31.

    Ibid.

  32. 32.

    Article 6.1, letter a or Article 9.2, letter a of the GDPR.

  33. 33.

    Article 6.1, letter b of the GDPR.

  34. 34.

    Article 20.4 of the GDPR.

  35. 35.

    As an example, “when a data subject exercises his or her right to data portability on his or her bank account, since it can contain personal data relating to the purchases and transactions of the account holder but also information relating to transactions, which have been “provided by” other individuals who have transferred money to the account holder. In this context, the rights and freedoms of the third parties are unlikely to be adversely affected in the webmail transmission or the bank account history transmission, if their data are used for the same purpose in each processing, i.e. as a contact address only used by the data subject, or as a history of one of the data subject’s bank account. Conversely, their rights and freedoms will not be respected if the new data controller uses the contact directory for marketing purposes”.

  36. 36.

    Article 29 Working Party 2017. The new version is lighter for data controllers: “Additionally, the data controllers should implement consent mechanisms for other data subjects involved, to ease data transmission for those cases where such parties are willing to consent, e.g. if they also want to move their data to some other data controller. Such a situation might arise, for example, with social networks, but it is up to data controllers to decide on the leading practice to follow”.

  37. 37.

    Urquhart et al. 2018.

  38. 38.

    ENISA 2018.

  39. 39.

    Van der Auwermeulen 2017.

  40. 40.

    Ibid.

  41. 41.

    Article 29 Working Party 2017.

  42. 42.

    Urquhart et al. 2018.

  43. 43.

    Article 17 of the GDPR. Allow me to refer to Martinelli 2017.

  44. 44.

    Stucker and Grunes 2016, p. 322.

  45. 45.

    Urquhart et al. 2018.

  46. 46.

    Ibid.

  47. 47.

    EDPS 2016b.

  48. 48.

    Urquhart et al. 2018.

  49. 49.

    Taylor et al. 2017; Mantelero 2016.

  50. 50.

    European Commission 2017b.

  51. 51.

    EDPS 2018.

  52. 52.

    Recital 22 of the Proposal for a Regulation.

  53. 53.

    European Commission 2018a.

  54. 54.

    Recital 2 of the proposed Regulation.

  55. 55.

    Recital 20 of the proposed Regulation.

  56. 56.

    European Commission 2015. The Directive shall apply “to any contract where the supplier supplies digital content to the consumer or undertakes to do so and, in exchange, a price is to be paid or the consumer actively provides counter-performance other than money in the form of personal data or any other data”.

  57. 57.

    Article 16.4, letter b, “Right to terminate long term contracts”: “the supplier shall provide the consumer with technical means to retrieve all any content provided by the consumer and any other data produced or generated through the consumer’s use of the digital content to the extent this data has been retained by the supplier. The consumer shall be entitled to retrieve the content without significant inconvenience, in reasonable time and in a commonly used data format”. See also European Parliamentary Research Service 2016.

  58. 58.

    Van der Auwermeulen 2017.

  59. 59.

    De Hert et al. 2018.

  60. 60.

    Ibid.

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Martinelli, S. (2019). Sharing Data and Privacy in the Platform Economy: The Right to Data Portability and “Porting Rights”. In: Reins, L. (eds) Regulating New Technologies in Uncertain Times. Information Technology and Law Series, vol 32. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-94-6265-279-8_8

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