The internet of (economic) things
[Commentary] There are economic issues that may arise as the “internet of things” IoT matures; Here are six that bear watching:
- Economic Productivity: some believe now that IoT can boost productivity growth by increasing the efficiency of traditional business operations such as manufacturing, transportation, and retail.
- The Nature of Competition: In antitrust terms, many more kinds of products and services could occupy adjacent levels of a value chain in a “vertical” relationship. This occurs where consumer demand for two products is closely related.
- How open will IoT be? History suggests that policymakers may scrutinize any IoT players that wield excessive power over consumers, perhaps in the antitrust context or as a separate question of regulation.
- Who Owns Big Data, Your Data? Big banks and Silicon Valley are waging an escalating war over your personal financial data.
- Standards Set Terms of Competition: An established standard can boost competition by allowing different devices to communicate with each other. It can also grant the winner a big marketplace advantage.
- Economic Regulation and the Impact on Competition: Regulation can either intentionally or inadvertently shape competition.
[Sallet is a visiting fellow at Brookings in Governance Studies. Previously, he served as deputy assistant attorney general for Litigation at the U.S. Department of Justice’s Antitrust Division from 2016-17. Prior to joining the Division in 2016, Mr. Sallet was general counsel at the Federal Communications Commission.]