[Annotated] The world's most valuable resource is no longer oil, but data

The data economy demands a new approach to antitrust rules^[각주:1] 

A new commodity^[각주:2] spawns^[각주:3] a lucrative^[각주:4], fast-growing industry, prompting^[각주:5] antitrust regulators^[각주:6] to step in^[각주:7] to restrain^[각주:8] those who control its flow^[각주:9]. A century ago, the resource in question^[각주:10] was oil. Now similar concerns are being raised by the giants^[각주:11] that deal in data, the oil of the digital era. These titans - Alphabet (Google's parent company^[각주:12]), Amazon, Apple, Facebook and Microsoft - look unstoppable^[각주:13]. They are the five most valuable listed firms^[각주:14] in the world. Their profits are surging^[각주:15]: they collectively^[각주:16] racked up^[각주:17] over $25bn in net profit^[각주:18] in the first quarter of 2017. Amazon captures^[각주:19] half of all dollars spent online in America. Google and Facebook accounted for^[각주:20] almost all the revenue growth^[각주:21] in digital advertising in America last year. 

Such dominance^[각주:22] has prompted calls for the tech giants to be broken up, as Standard Oil was in the early 20th century. This newspaper has argued against^[각주:23] such drastic action^[각주:24] in the past^[각주:25]. Size alone is not a crime^[각주:26]. The giants' success has benefited consumers. Few want to live without Google's search engine, Amazon's one-day delivery or Facebook's newsfeed. Nor do these firms raise the alarm^[각주:27] when standard antitrust tests are applied. Far from gouging^[각주:28] consumers, many of their services are free (users pay, in effect^[각주:29], by handing over^[각주:30] yet^[각주:31] more data). Take account of^[각주:32] offline rivals, and their market shares look less worrying^[각주:33]. And the emergence of upstarts^[각주:34] like Snapchat suggests that new entrants^[각주:35] can still make waves^[각주:36].

But there is cause for concern. Internet companies' control of data gives them enormous power. Old ways of thinking about competition, devised^[각주:37] in the era of^[각주:38] oil, look outdated^[각주:39] in what has come to be called the "data economy". A new approach is needed.

Quantity has a quality all its own^[각주:40]

What has changed? Smartphones and the internet have made data abundant^[각주:41], ubiquitous^[각주:42] and far more valuable. Whether you are going for a run^[각주:43], watching TV or even just sitting in traffic^[각주:44], virtually^[각주:45] every activity creates a digital trace^[각주:46] - more raw material^[각주:47] for the data distilleries^[각주:48]. As devices from watches to cars connect to the internet, the volume is increasing: some estimate that a self-driving car will generate 100 gigabytes per second. Meanwhile, artificial-intelligence (AI) techniques such as machine learning extract more value from^[각주:49] data. Algorithms can predict when a customer is ready to buy, a jet-engine needs servicing^[각주:50] or a person is at risk of a disease^[각주:51]. Industrial giants^[각주:52] such as GE and Siemens now sell themselves as data firms^[각주:53]. 

This abundance of^[각주:54] data changes the nature of competition. Technology giants have always benefited from^[각주:55] network effects: the more users Facebook signs up, the more attractive signing up becomes for others. With data there are extra network effects. By collecting more data, a firm has more scope to^[각주:56] improve its products, which attracts more users, generating even more data, and so on. The more data Tesla gathers from its self-driving cars, the better it can make them at driving themselves - part of the reason the firm, which sold only 25,000 cars in the first quarter, is now worth more than GM, which sold 2.3m. Vast^[각주:57] pools^[각주:58] of data can thus act as protective^[각주:59] moats^[각주:60].

Access^[각주:61] to data also protects companies from rivals in another way. The case for being sanguine^[각주:62] about competition in the tech industry rests on^[각주:63] the potential for^[각주:64] incumbents^[각주:65] to be blindsided by^[각주:66] a startup in a garage or an unexpected technological shift^[각주:67]. But both are less likely in the data age. The giants' surveillance systems^[각주:68] span^[각주:69] the entire economy: Google can see what people search for, Facebook what they share, Amazon what they buy. They own app stores and operating systems, and rent out^[각주:70] computing power^[각주:71] to startups. They have a "God's eye view" of activities in their own markets and beyond. They can see when a new product or service gains traction^[각주:72], allowing them to copy it or simply buy the upstart before it becomes too great a threat. Many think Facebook's $22bn purchase in 2014 of WhatsApp, a messaging app with fewer than 60 employees, falls into this category of^[각주:73] "shoot-out^[각주:74] acquisitions" that eliminate potential rivals. By providing barriers^[각주:75] to entry^[각주:76] and early-warning^[각주:77] systems, data can stifle^[각주:78] competition. 

Who ya gonna call, trustbusters^[각주:79]? 

The nature of data makes the antitrust remedies of the past less useful. Breaking up a firm like Google into^[각주:80] five Googlets^[각주:81] would not stop network effects from reasserting themselves^[각주:82]: in time^[각주:83], one of them would become dominant again. A radical rethink^[각주:84] is required - and as the outlines of a new approach start to become apparent, two ideas stand out^[각주:85].

The first is that antitrust authorities^[각주:86] need to move from the industrial era into the 21st century. When considering a merger^[각주:87], for example, they have traditionally used size to determine when to intervene. They now need to take into account^[각주:88] the extent of^[각주:89] firms' data assets^[각주:90] when assessing^[각주:91] the impact of deals. The purchase price^[각주:92] could also be a signal that an incumbent is buying a nascent^[각주:93] threat. On these measures, Facebook's willingness to pay so much for WhatsApp, which had no revenue^[각주:94] to speak of, would have raised red flags. Trustbusters must also become more data-savvy in their analysis of market dynamics^[각주:95], for example by using simulations to hunt for^[각주:96] algorithms colluding^[각주:97] over prices or to determine how best to promote competition^[각주:98].

The second principle^[각주:99] is to loosen the grip^[각주:100] that providers of online services have over data and give more control to those who supply them. More transparency^[각주:101] would help: companies could be forced to reveal to consumers what information they hold and how much money they make from it. Governments could encourage the emergence of^[각주:102] new services by opening up more of their own data vaults^[각주:103] or managing crucial parts of the data economy as public infrastructure, as India does with its digital-identity system, Aadhaar. They could also mandate^[각주:104] the sharing of certain kinds of data, with users' consent - an approach Europe is taking in financial services by requiring banks to make customers' data accessible to third parties^[각주:105].

Rebooting^[각주:106] antitrust for the information age will not be easy. It will entail^[각주:107] new risks: more data sharing, for instance, could threaten privacy. But if governments don't want a data economy dominated by a few giants, they will need to act soon.

1. antitrust rule ; 독과점 방지 규칙 [본문으로]
2. commodity ; (pl. -ies) 1. (경제) 상품, 물품; 원자재 [본문으로]
3. spawn ; 2. [타동사][VN] (흔히 못마땅함) (어떤 결과・상황을) 낳다 [본문으로]
4. lucrative ; [형용사] 수익성이 좋은 [본문으로]
5. prompt ; 1. (사람에게 어떤 결정을 내리도록・어떤 일이 일어나도록) 하다[촉발하다] [본문으로]
6. regulator ; 1. (산업・상업 분야의) 규제[단속] 기관[담당자] [본문으로]
7. step in ; (합의 도출·문제 해결을 위해) 돕고 나서다[개입하다] [본문으로]
8. restrain ; 3. (더 왕성해지지 못하도록) 억제하다 [본문으로]
9. control flow ; 흐름을 제어하다 [본문으로]
10. in question ; 문제의[논의가 되고 있는] [본문으로]
11. giant ; 3. 거대 조직[기업] [본문으로]
12. parent company ; 모(母)회사 [본문으로]
13. unstoppable ; [형용사] 막을[제지할] 수 없는 [본문으로]
14. listed firms ; (세무) 공개법인(公開法人), 상장기업 [본문으로]
15. surge ; 3. (물가・수익 등이) 급등[급증]하다 [본문으로]
16. collectively ; [부사] 집합적으로, 총괄하여; [문법] 집합 명사적으로 [본문으로]
17. rack up ; (사업상의 수익·손실을) 보다[얻다], (시합에서 점수를) 쌓아올리다 [본문으로]
18. net profit ; 순이익, 순익 [본문으로]
19. capture ; 3. TAKE CONTROL | 점유하다, 차지하다 [본문으로]
20. account for ; 3. (부분·비율을) 차지하다 [본문으로]
21. revenue growth ; 매출 증대 [본문으로]
22. dominance ; [U] 우월(ascendancy); 권세; 지배; 우세; [생물·심리] 우성(優性) [본문으로]
23. argue against ; …에 반대[찬성]론을 펴다 [본문으로]
24. drastic action ; 과감한 조치 [본문으로]
25. in the past ; (《과거형과 함께》) 옛날, 이전에, 과거에; 《완료형과 함께》 종래, 지금까지 [본문으로]
26. size alone is not a crime ; 크기, 규모 만으로는 범죄가 되지는 않는다. [본문으로]
27. raise the alarm ; [동사] 경보를 울리다, 경고를 하다. ;; 동의어 give the alarm. [본문으로]
28. gouge ; 2. (美) 바가지를 씌우다; 값을 부당하게 올리다 [본문으로]
29. in effect ; 사실상[실제로는] [본문으로]
30. hand over ; (공식적으로·격식을 갖추어) ~을 넘겨주다[양도하다] [본문으로]
31. yet ; 6. ~ another/more, ~ again 거기에[그 위에] 또(수・양・횟수의 증가를 강조할 때) [본문으로]
32. take account of ; ~을 고려하다[감안하다] ;; 동의어 take something into account [본문으로]
33. worrying ; [형용사] 걱정스러운, 걱정되는, 우려되는 [본문으로]
34. upstart ; [명사] (못마땅함) 건방진 놈, 졸부, 급부상한 작은 기업 [본문으로]
35. entrant ; [~ (to sth)] 1. (어떤 직종・대학 등에) 갓 들어온[합류한] 사람 [본문으로]
36. make waves ; 풍파를 일으키다, 세력을 얻다 [본문으로]
37. devise ; [타동사][VN] 창안[고안]하다 [본문으로]
38. in the era of ; ~의 시대 [본문으로]
39. outdated ; [형용사] (더 이상 쓸모가 없게) 구식인 ;; 참고 out of date [본문으로]
40. ... all its own ; ~만의 독특한, 특별한 것 [본문으로]
41. abundant ; [형용사] (격식) 풍부한 [본문으로]
42. ubiquitous ; [형용사] (주로 명사 앞에 씀) (격식 또는 유머) 어디에나 있는, 아주 흔한 [본문으로]
43. go for a run ; (운동으로) 달리다 [본문으로]
44. sit in traffic ; 교통체증 속에 있다 [본문으로]
45. virtually ; 1. 사실상, 거의 [본문으로]
46. digital trace ; 디지탈 흔적 [본문으로]
47. raw material ; [C , U] 원자재, 원료, 소재 [본문으로]
48. distillery ; (pl. -ies) 증류주 공장[양조장] [본문으로]
49. extract ; 5. (격식) (어떤 상황에서 느낌・특질을) 얻다[찾다] [본문으로]
50. servicing ; [U] 1. (차량・기계의) 정비 [본문으로]
51. at risk of ; ~의 위험에 처한 [본문으로]
52. industrial giants ; 거대 자본과 영향력을 지닌 대기업 [본문으로]
53. sell oneself ; 2. (구어) 자기 선전을 하다 [본문으로]
54. abundance ; [sing., U] ~ (of sth) (격식) 풍부 [본문으로]
55. benefit from ; ~로부터 이익을 얻다 [본문으로]
56. scope ; [U] 1. ~ (for sth) | ~ (for sb) (to do sth) (무엇을 하거나 이룰 수 있는) 기회[여지/능력] [본문으로]
57. vast ; [형용사] (범위・크기・양 등이) 어마어마한[방대한/막대한] [본문으로]
58. pool ; 3. 공동 이용의 시설[자재, 서비스, 노동력] [본문으로]
59. protective ; [형용사] (명사 앞에만 씀) 보호하는, 보호용의 [본문으로]
60. moat ; [명사] 호, 해자(성 주위에 둘러 판 못) ;; US [moʊt] UK [məʊt] [본문으로]
61. access ; 2. ~ (to sth) 접근권, 접촉 기회 ;; 참고 visitation [본문으로]
62. sanguine ; [형용사] ~ (about sth) (격식) 낙관적인, 자신감이 넘치는 [본문으로]
63. rest on ; ~에 기초하다, ~에 달려 있다[의지하다] [본문으로]
64. potential ; 1. [U] ~ (for/for doing sth) 가능성 [본문으로]
65. incumbent ; [명사] (공적인 직위의) 재임자 [본문으로]
66. blindside ; 2. [주로 수동태로] 기습하다 [본문으로]
67. technological shift ; 기술 혁신 [본문으로]
68. surveillance system ; 감시 시스템 [본문으로]
69. span ; 2. (넓은 범위・많은 것에[을]) 걸치다[포괄하다] [본문으로]
70. rent out ; …을 임대하다 [본문으로]
71. computing power ; 연산력 [본문으로]
72. gain traction ; 관심이 쏠리다, 관심을 얻다 [본문으로]
73. fall into a category of ; …의 범주에 들어가다. [본문으로]
74. shoot-out ; [명사] (결판이 나도록 계속되는) 총격전 ;; 참고 penalty shoot-out [본문으로]
75. barrier ; 2. ~ (to sth) (어떤 일에 대한) 장애물[장벽] [본문으로]
76. entry ; (pl. -ies) 1. GOING IN | [C , U] ~ (into sth) 들어감[옴], 입장, 등장 [본문으로]
77. early-warning ; [형용사] 조기 경보용의(EW). [본문으로]
78. stifle ; 2. (너무 덥거나 공기가 탁하여) 숨이 막히다, 질식하다; 숨이 막히게 하다, 질식시키다 [본문으로]
79. trustbuster ; [명사] (구어) (미 연방 정부의) 반(反)트러스트법 위반 단속관 [본문으로]
80. break up ... into ; …으로 분산되다[분산시키다]. [본문으로]
81. googlet ; Any company or entity snatched up by Google. [본문으로]
82. reassert ; 2. [타동사][VN] ~ itself 다시 효력을 발휘하다[영향을 미치다] [본문으로]
83. in time ; 이윽고 [본문으로]
84. rethink ; [NOUN] an act of considering something such as an idea, plan, or system again in order to change it [본문으로]
85. stand out ; [동사] 튀어나오다; 눈에 띄다, 빼어나다; 견디다; 주장하다. ;; 동의어 project; be conspicuous; show oppo­sition; persist in. [본문으로]
86. antitrust authority ; 독과점 규제당국 [본문으로]
87. merger ; [C] ~ (between/of A and B) | ~ (with sth) (조직체・사업체의) 합병 [본문으로]
88. take into account ; …을 고려하다, 참작하다, 계산에 넣다 [본문으로]
89. extent ; [sing., U] 1. (크기・중요성・심각성 등의) 정도[규모] [본문으로]
90. data assets ; 데이터자산 [본문으로]
91. assess ; 1. ~ sb/sth (as sth) (특성・자질 등을) 재다[가늠하다] [본문으로]
92. purchase price ; [명사] (주로 단수로) (격식) 구입[매입] 가격 [본문으로]
93. nascent ; [형용사] (격식) 발생기의, 초기의 [본문으로]
94. revenue ; [U] (rev・enues [pl.]) (정부・기관의) 수익[수입/세입] ;; 참고 the Inland Revenue [본문으로]
95. dynamics ; pl. 1. [단수 취급] [물리] 역학; 동역학; 역학 관계 [본문으로]
96. hunt for ; ~을 찾다, 물색하다, 사냥하다 [본문으로]
97. collude ; [자동사][V] ~ (with sb) (in sth/in doing sth) | ~ (with sb) (to do sth) (격식 못마땅함) 공모[결탁]하다 [본문으로]
98. promote competition ; 경쟁을 장려, 촉진하다 [본문으로]
99. principle ; 1. [C , U] [주로 복수로] (개인의 도덕・신념과 관련된) 원칙 [본문으로]
100. grip ; 2. CONTROL/POWER | [sing.] ~ (on sb/sth) 통제, 지배 [본문으로]
101. transparency ; 4. [U] (상황・주장 따위의) 명료성 [본문으로]
102. emergence ; 1. 출현, 발생 ((of, from)) [본문으로]
103. vault ; 1. (특히 은행의) 금고[귀중품 보관실] [본문으로]
104. mandate ; 2. [타동사][VN to inf] (특히 정부・위원회에) 권한을 주다 [본문으로]
105. third party ; [명사] (격식 또는 법률) 제삼자 [본문으로]
106. reboot ; [타,자동사][VN, V] (컴퓨터) 재시동[리부트]하다 [본문으로]
107. entail ; [동사] 수반하다 [본문으로]