Research On Antitrust Issues In Internet Industry: From The Perspective Of Personal Information Competition

Internet industry has been one of the most rapidly developing industries worldwide.There have been a number of large Internet enterprises in each country and a number of antitrust cases against Internet giants as well.However,the traditional antitrust theory is not sufficient to explain some of the specific competition phenomenon occurred in the evolving industry.In the meantime,traditional analytical methods for antitrust have been encountering various challenges.The reasons behind those problems are the deviation on recognition of competition in Internet industry and limitations that exist in traditional antitrust theory.The Thesis considers adopting two-sided market model,where Internet service providers uses platform as a unit to participate in the market and compete with each other by getting access to personal information and making use of them.The Thesis brings in a new perspective to discuss the antitrust issues of Internet industry—personal information competition perspective.The aim of the Thesis is to rediscover Internet industry from this new perspective and on the basis of which to explain antitrust issues of Internet industry.The new perspective is a hypothesis based on industry phenomenon and legal issues.The demonstration of the Thesis is actually the demonstration of this hypothesis.Personal information is the core concept of the personal information competition perspective,which requires identifiable definition model to be defined.Distinguishing direct identifiable information and indirect identifiable information is also needed with the latter one adopting dynamic case-by-case analytical method.The two prominent characteristics of Internet industry is adopting two-sided market model and providing free service.The two-sided market is a market that enables participant of two sides or more to interact directly,with which participant of each side has close connection.The two-sided market can be categorized with “supply and demand method”.Free servicing model can be divided into no value added model,substitutive value added model and value reconstruction model in detail.Competition in Internet industry has three characteristics : User competition,cross-industry competition and innovation competition.Personal information plays an important role in the formation of the three characteristics.Protection for personal information may constitute as non-pricing competition element and pricing competition element under antitrust scenario at the same time.Also,including protection for personal information into the analytical framework of antitrust law can improve consumer welfare.Therefore,we can expand the application of traditional antitrust theory.However,only when the infringement of personal information harms the market scheme,can we consider adopting this method to expand the application of traditional antitrust law theory.In the meantime,it is of essence to balance the positive and negative impacts of the expansive application on efficiency and innovation.When evaluating the market power of Internet service providers,we need to consider market share,barriesrs to entry and other elements.With regard to defining relevant product market,we should consider the influence of the type of two-sided market and business model.Also,we should notice the inadaptability of traditional relevant market defining tools and select proper tool and index that can reflect “market share rate” as the basis for calculating market share on a case-by-case method.At the same time,avoid defining relevant personal information market at the present stage.When evaluating other elements that influence market power,we should consider the impact of accumulation of personal information on increasing barriers to entry.Getting access to personal information and making use of them may restrict or eliminate competition.Collecting personal information illegally may constitute as violating excessive pricing under antitrust law.Concentration of undertakings in the form of accumulation of personal information might generate unilateral effect.Behaviors that infringe right to personal information portability can generate foreclosure effects.Program trading may cause tacit collusion.Remedies are needed for behaviors that violate antitrust law.From the perspective of personal information competition,exercising right to personal information portability is a behavioral remedy to lower switching cost in Internet industry.Providing copy of personal information database is a structural remedy.A state needs to determine its attitude toward antitrust regulation on specific industry,fully considering its market condition,regulation environment,legal enforcement ability and other elements.“Error-cost” method is an effective tool to comprehensively evaluate all the elements.China's Internet industry develops rapidly and its competition scheme works well,while the regulation environment of antitrust law is not complete and the implementation of antitrust law is to be improved.Taking this account,in order to avoid positive fallacy,we should take cautious attitude towards regulating antitrust of Internet industry.As for the expansive application of antitrust theory under personal information competition perspective,there are still institutional limitations.It is important to construct personal information protection mechanism and personal information price discovery mechanism.