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Abstract

The digital ride-hailing service platforms have advanced significantly due to technological development. It resulted in lower consumer costs and better-quality service. Thus, consumers opted for such platforms more than the conventional transportation, resulting in their exponential growth over the years such as Gojek and Grab in Indonesia. Their strong market position was achieved quickly, facilitated by innovation advantages such as indirect network effects and algorithm-based analysis of users’ past data. Ultimately, data has become a barrier for potential competitors to entering the market. Simultaneously, the incumbents or the dominant market holders likely to use a technology-based strategy by keeping access to such data closed and inaccessible, maintaining their market position. Its strategy might fall under exclusionary abuse, a behavior that intends to protect and increase platforms’ dominant position. Thus, such action can be harmful to healthy competition and impede inclusive growth in ride-hailing services’ market competition. In this paper, the author will argue that refusal to grant data access should be regulated as a part of Indonesia Competition Law’s exclusionary conduct and remedied using mandated data portability.

Bahasa Abstract

Platform layanan sewa angkutan digital telah maju secara signifikan karena perkembangan teknologi. Hal menghasilkan biaya konsumen yang lebih rendah dan layanan berkualitas lebih baik. Dengan demikian, konsumen lebih memilih platform tersebut daripada transportasi konvensional, sehingga pertumbuhan eksponensial mereka selama bertahun-tahun seperti Gojek dan Grab di Indonesia. Posisi pasar mereka yang kuat dicapai dengan cepat, difasilitasi oleh keunggulan inovasi seperti efek jaringan tidak langsung dan analisis data masa lalu pengguna berbasis algoritma. Pada akhirnya, data telah menjadi penghalang bagi pesaing potensial untuk memasuki pasar. Secara bersamaan, petahana atau pemegang pasar dominan cenderung menggunakan strategi berbasis teknologi dengan menjaga akses ke data tersebut tertutup dan tidak dapat diakses, mempertahankan posisi pasar mereka. Strateginya mungkin termasuk dalam penyalahgunaan eksklusif, perilaku yang bertujuan untuk melindungi dan meningkatkan posisi dominan platform. Dengan demikian, tindakan tersebut dapat membahayakan persaingan yang sehat dan menghambat pertumbuhan inklusif dalam persaingan pasar layanan perjalanan. Dalam tulisan ini, penulis berargumen bahwa penolakan untuk memberikan akses data harus diatur sebagai bagian dari perilaku ekslusif UU Persaingan Indonesia dan diperbaiki dengan menggunakan portabilitas data yang diamanatkan.

References

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Research Papers and Working Papers Alexiadis, Peter, and Alexandre de Streel, ’Designing an EU Intervention Standard for Digital Platform’ (Working Paper European University Insitute No RSCAS 2020/14, Robert Schuman Centre for Advanced Studies, Florence School of Regulation, February 2020) Ali, Ifzal, and Juzhong Zhuang, ‘Inclusive Growth toward a Prosperous Asia: Policy Implication’ (Working Paper Asian Development Bank Series No 97, Economics and Research Department Asian Development Bank, July 2007) Anchustegui, Ignacio Herrera, and Julian Nowag, ‘How the Uber and Lyft Case Provides an Impetus to Re-Examine Buyer Power in the World of Big Data and Algorithms’ (Working Paper No 01/2017, Lund University, 7 July 2017) Borghi, Maurizio, ‘Data Portability and Regulation of Digital Markets’ (Working Paper, Center for Intellectual Property Policy and Management, Bournemouth University, 1 September 2019) Brown, Ian, ‘Interoperability as a Tool for Competition Regulation’ (Research Paper, OpenForum Europe Academy, November 2020) Chen, Kai, and Edison T Tse, ‘Dynamic Platform Competition in Two-Sided Markets’ (Working Paper, Standford University 19 February 2008 Collyer, Kate, Hugh Mullan, and Natalie Timan, ’Measuring Market Power in Multi-Sided Markets’ (Research Discussion Paper No DAF/COMP/WD(2017)35/FINAL, Directorate for Financial and Enterprise Affairs Competition Committee, Organisation for Economic Co-operation and Development, 15 November 2017) Competition Policy and Law Group APEC Economic Committee, ‘Competition Policy for Regulating Online Platforms in the APEC Region’ (Research Report No APEC#2019-EC-01.3, Asia-Pacific Economic Cooperation, August 2019). Crémer, Jacques, Yves-Alexandre de Montjoye and Heike Schweitzer, ’Competition Policy for The Digital Era’ (Research Report European Commission, Directorate-General for Competition, European Commission, 2019) Geradin, Damien, ‘What Should EU Competition Policy Do to Address the Concerns Raised by The Digital Platforms’ Market Power?’ (Discussion Paper No 2018-041, Tilburg Law and Economics Center, 12 December 2018) Graef, Inge, Thomas Tombal and Alexandre de Streel, ‘Limits and Enablers of Data Sharing: An Analytical Framework for EU Competition, Data Protection and Consumer Law’ (Discussion Paper No DP 2019-024, Tilburg Law and Economics Center, 27 November 2019) Jarsulic, Marc, ‘Using Antitrust Law to Address the Market Power of Platform Monopolies’ (Research Report, Center for American Progress, 28 July 2020). Katz, Michael L, ‘Exclusionary Conduct in Multi-Sided Markets’ (Discussion Paper No DAF/COMP/WD(2017)28/FINAL, Directorate for Financial and Enterprise Affairs Competition Committee, Organisation for Economic Co-operation and Development, 15 November 2017) Kerber, Wolfgang, ‘Digital Markets, Data, and Privacy: Competition Law, Consumer Law, and Data Protection’ (Joint Discussion Paper Series in Economics by MAGKS No 14-2016, Philipps-University Marburg, February 2016) Plaitakis, Ariadne, ‘Digital Data and Competition Issue’ (Working Papers BFA Globals No 03, BFA Global, April 2019) Oxera, ‘Market Power in Digital Platforms’ (Discussion Paper for European Commission, Oxera, 30 September 2018) Robertson, Viktoria, ‘Antitrust Law and Digital Markets: A Guide to the European Competition Law Experience in the Digital Economy’ (Research Paper, University of Graz, Vienna University of Economics and Business, 28 February 2020) Schweitzer, Heike, et al, ‘Modernising the Law on Abuse of Market Power’ (Research Report, Germany Federal Ministry for Economic Affairs and Energy, 17 September 2018) Swire, Peter, ‘The Portability and Other Required Transfers Impact Assessment: Assessing Competition, Privacy, Cybersecurity, and Other Consideration’ (Research Paper No 3689171, Georgia Tech Scheller College of Business, 8 September 2020)

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Student Thesis Ayu Rachmawati, ‘Relevant Market on Online Traffic Transportation’ (LLB Thesis, Universitas Islam Indonesia, 2017)

Internet Materials Ken Dai, ‘Big Data and Antitrust Risks in Close-Up: From the Perspective of Real Cases’ Mondaq: Connecting Knowledge & People https://www.mondaq.com/china/antitrust-eu-competition-/1010918/big-data-and-antitrust-risks-in-close-up-from-the-perspective-of-real-cases Rinaldi Mohammad Azka, ‘Berapa Sih Jumlah Pengemudi Ojek Online? Simak Penelusuran Bisnis.com‘ [How Many Online Ride-Hailing Riders?] (Indonesia) Bisnis.com https://ekonomi.bisnis.com/read/20191112/98/1169620/berapa-sih-jumlah-pengemudi-ojek-online-simak-penelusuran-bisnis.com Ministry of Communication and Information Technology, “Public Consultation on Draft Regulation of the Minister of Communication and Informatics Regarding Data Interoperability” https://www.kominfo.go.id/content/detail/27030/siaran-pers-no-74hmkominfo062020-tentang-konsultasi-publik-rancangan-peraturan-menteri-kominfo-mengenai-interoperabilitas-data/0/siaran_pers

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