{"id":20619,"date":"2020-07-07T16:33:16","date_gmt":"2020-07-07T16:33:16","guid":{"rendered":"https:\/\/www.publicknowledge.org\/?post_type=press_release&#038;p=20619"},"modified":"2021-11-24T16:41:40","modified_gmt":"2021-11-24T16:41:40","slug":"new-public-knowledge-paper-urges-congress-to-adopt-law-protecting-vendor-data-from-digital-platforms","status":"publish","type":"post","link":"https:\/\/publicknowledge.org\/new-public-knowledge-paper-urges-congress-to-adopt-law-protecting-vendor-data-from-digital-platforms\/","title":{"rendered":"New Public Knowledge Paper Urges Congress to Adopt Law Protecting Vendor Data from Digital Platforms"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Today, we\u2019re happy to announce our newest white paper, \u201c<\/span><a href=\"https:\/\/www.publicknowledge.org\/documents\/mind-your-own-business-protecting-proprietary-third-party-information-from-digital-platforms\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Mind Your Own Business: Protecting Proprietary Third-Party Information From Digital Platforms<\/span><\/a><span style=\"font-weight: 400;\">,\u201d by Public Knowledge Senior Vice President Harold Feld. The paper stems from a platform competition research project led by Public Knowledge and supported by Omidyar Network.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The paper addresses a narrow but important problem. Vendors must expose proprietary information, such as sales data or logistic information, to digital platforms like Amazon or Facebook in order to reach customers on those platforms. This gives digital platforms the ability to use vendor proprietary information to create, price, and market rival products, enabling platforms to unfairly benefit from the work, business acumen, and risks taken by third-party vendors. Although accusations against Amazon have received <\/span><a href=\"https:\/\/www.wsj.com\/articles\/amazon-scooped-up-data-from-its-own-sellers-to-launch-competing-products-11587650015\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">the most press coverage<\/span><\/a><span style=\"font-weight: 400;\">, the problem goes well beyond Amazon and undermines competition broadly.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The paper proposes a solution modeled on Section 222 of the Communications Act (47 U.S.C. \u00a7222), which imposes requirements on telecommunications carriers to protect \u201ccustomer proprietary network information,\u201d or \u201cCPNI.\u201d The paper proposes a new <a href=\"https:\/\/www.publicknowledge.org\/documents\/platform-cpni-statute\/\" target=\"_blank\" rel=\"noopener noreferrer\">draft statute<\/a> to create a \u201cplatform CPNI\u201d rule that would:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">For the first time, define \u201cdigital platform\u201d in statutory language;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Limit the use &#8212; not the collection &#8212; of vendor proprietary information by digital platforms to the purpose stated, absolutely prohibiting platforms from using this information for marketing or strategy related to rival products; and,<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Limit the use of buyer proprietary information to prevent \u2018reverse engineering\u2019 vendor proprietary data.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The following can be attributed to Harold Feld, Senior Vice President at Public Knowledge:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s fundamentally unfair for dominant platforms to take advantage of third-party vendor data. The small business or individual puts in the work to define a product, calculate profitable features, and set a fair price point &#8212; assuming all the risk while dominant platforms reap the reward. It doesn\u2019t have to be this way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn last year\u2019s book, <\/span><a href=\"https:\/\/www.digitalplatformact.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><i><span style=\"font-weight: 400;\">The Case for the Digital Platform Act<\/span><\/i><\/a><span style=\"font-weight: 400;\">, we proposed a <\/span><a href=\"https:\/\/actnow.io\/Qx4TqVG\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">comprehensive regulatory framework for digital platforms<\/span><\/a><span style=\"font-weight: 400;\"> to promote competition and protect consumers. Now, we\u2019re proposing actual first-draft legislation to help Congress protect the data of third-party vendors on dominant platforms. Our proposal targets a specific example of the broader anti-competitive problem of platforms\u2019 data access recognized by both American and European antitrust experts. Congress could adopt this legislation tomorrow to take an important step toward curbing the market power of the handful of digital platforms dominating online commerce.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may view the paper <\/span><a href=\"https:\/\/www.publicknowledge.org\/documents\/mind-your-own-business-protecting-proprietary-third-party-information-from-digital-platforms\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">. You may also view our latest blog post, \u201c<a href=\"https:\/\/www.publicknowledge.org\/blog\/an-ounce-of-preventive-regulation-is-worth-a-pound-of-antitrust-enforcement-the-case-for-platform-cpni\/\" target=\"_blank\" rel=\"noopener noreferrer\">An Ounce of Preventive Regulation is Worth a Pound of Antitrust Enforcement: The Case for Platform CPNI<\/a>,\u201d for more information on our proposal.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today, we\u2019re happy to announce our newest white paper, \u201cMind Your Own Business: Protecting Proprietary Third-Party Information From Digital Platforms,\u201d by Public Knowledge Senior Vice President Harold Feld. The paper stems from a platform competition research project led by Public Knowledge and supported by Omidyar Network.<\/p>\n","protected":false},"author":122,"featured_media":0,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[14],"class_list":["post-20619","post","type-post","status-publish","format-standard","hentry","category-press-release","tag-platform-regulation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.5 (Yoast SEO v26.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Public Knowledge Paper Urges Congress to Adopt Law Protecting Vendor Data from Digital Platforms - Public Knowledge<\/title>\n<meta name=\"description\" content=\"Public Knowledge promotes freedom of expression, an open internet, and access to affordable communications tools and creative works. 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