Knowledge monopolies and the innovation divide: A governance perspective

Abstract

The rise of digital platforms creates knowledge monopolies that threaten innovation. Their power derives from the imposition of data obligations and persistent coupling on platform participation and their usurpation of the rights to data created by other participants to facilitate information asymmetries. Knowledge monopolies can use machine learning to develop competitive insights unavailable to every other platform participant. This information asymmetry stifles innovation, stokes the growth of the monopoly, and reinforces its ascendency. National or regional governance structures, such as laws and regulatory authorities, constrain economic monopolies deemed not in the public interest. We argue the need for legislation and an associated regulatory mechanism to curtail coercive data obligations, control, eliminate data rights exploitation, and prevent mergers and acquisitions that could create or extend knowledge monopolies.