Direction de la Science, de la technologie et de l'innovation
The impact of data portability on user empowerment, innovation, and competition
Data portability enhances access to and sharing of data across digital services and
platforms. It can empower users to play a more active role in the re-use of their
data and can help stimulate competition and innovation by fostering interoperability
while reducing switching costs and lock-in effects. However, the effectiveness of
data portability in enhancing competition depends on the terms and conditions of data
transfer and the extent to which competitors can make use of the data effectively.
Additionally, there are potential downsides: data portability measures may unintentionally
stifle competition in fast-evolving markets where interoperability requirements may
disproportionately burden SMEs and start-ups. Data portability can also increase digital
security and privacy risks by enabling data transfers to multiple destinations. This
note presents the following five dimensions essential for designing and implementing
data portability frameworks: sectoral scope; beneficiaries; type of data; legal obligations;
and operational modality.