From Data Myths to Data Reality: What Generative AI Can Tell Us About Competition Policy (and Vice Versa)

It is often said that so-called “data network effects” entrench incumbents in both the markets where data is collected and adjacent markets. If true, this suggests the largest online platforms — including Alphabet, Meta, Apple, and Amazon — should have a meaningful advantage in the burgeoning markets for generative AI services. And yet the tech giants have, to date, been unable to leverage their vast data troves to outcompete startups like OpenAI and Midjourney. This article suggests the