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:

1. 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.
2. 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.
3. 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.
4. Who Owns Big Data, Your Data? Big banks and Silicon Valley are waging an escalating war over your personal financial data.
5. 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.
6. 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.]