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Of Coffee Pods, Videogames, and Missed Interoperability: Reflections for EU Governance of the Internet of Things

By  |  January 6, 2016

Posted by Social Science Research Network

Of Coffee Pods, Videogames, and Missed Interoperability: Reflections for EU Governance of the Internet of Things

Nicolo Zingales (Tilburg Law and Economics Center)

Abstract:    This paper argues that the advent of the Internet of Things (IoT) raises the need for an interoperability that goes beyond mere interconnection between digital objects, and requires IoT manufacturers to be able to access and “mine” each other’s data. Observing that collaboration in existing IoT consortia comes short of this deeper level of integration, it calls the European Commission to develop guidelines that facilitate broader cooperation, for example by adopting model licenses and best practices; and to address the interaction between competition and standardization involving intellectual property other than patents. The paper also illustrates with two examples that lock-in strategies pursued by leading platforms by preventing interoperability in secondary markets (specifically, coffee pods and console video games) resulted of dubious advantage, generating consumer dissatisfaction, requiring significant legal expenses and attracting antitrust scrutiny.