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MENTAL MODEL · M3429

Data Monopoly

Data Monopoly
BusinessmediumIndustrial Organization
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Updated 2026-08-01

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INTRODUCTION

English translation pending.

CORE DEFINITION

Data monopoly describes how large digital firms turn exclusive access to user data into market dominance. Network effects and data feedback loops let incumbents improve their products faster, raising entry barriers and conferring pricing power that rivals cannot offset. Because the advantage rests on accumulated behavioral data rather than a single transferable asset, competition authorities treat data access, portability, and interoperability as new levers of competition policy alongside traditional antitrust tools.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

- Digital Competition Policy: frame how data concentration blocks entry and why portability rules matter. - Moat Diagnosis: ask whether an advantage comes from a better product or from exclusive data. - Remedy Design: compare data sharing, interoperability, and privacy rules as ways to reopen a market.

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Each additional user improves the service and generates more data, which improves the service again, so quality and data reinforce each other in a loop. The incumbent's dataset cannot be replicated by a newcomer at any reasonable cost, which converts a scale advantage into an entry barrier and durable pricing power.

MINIMUM ACTION

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Source support: Explicit

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    kiri.or.krhttps://www.kiri.or.kr/eng/pdf/CEO_Brief_21-16.pdfZH · Explicit
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