Can API Standardisation Ensure Fair Competition with the Tech Giants? - COMSYS, RWTH Aachen

Can API Standardisation Ensure
Fair Competition with the Tech
Giants?
11th International Conference on Standardisation and Innovation
in Information Technology (SIIT)
2 – 3 September 2020

Dr. David P. Reed
University of Colorado Boulder
david.reed@colorado.edu

My Background

• Public Service — Federal Communications Commission
    • Spectrum Management — Standards for PCS
• Industry — CableLabs
    • R&D Projects/Strategic Planning
    • Cable industry specifications/ITU Study Group 9 standards (DOCSIS, PacketCable)
• Academia — Scholar in Residence, CU Boulder
    • Director, Interdisciplinary Telecom Program (2015 - 2018)
    • Senior Fellow, Silicon Flatirons (current)
    • Teach graduate courses on Principles of Internet Policy, Data Communications,
     Spectrum Management

Two Current Tech Policy Debates of Relevance
Centered on use of APIs to address competitive concerns

• Data Portability requirements for consumer privacy
  • Part of EU’s General Data Protection Regulation (GDPR), California
    Consumer Privacy Act (CCPA), and other health/financial laws

• Open software interfaces in 5G systems
  • O-RAN: Open Radio Access Network interfaces proposed by the O-RAN
    Alliance

GDPR: Right for Easier Access to One's Data
Data Portability one of GDPR’s key policy objectives

• What policy problem is data portability intended to solve?
   • Primary: Cut switching costs and provide consumer’s control of their personal
   information
  • Also: Lack of competition amongst application platforms due to network effects
• Right to data portability will make it easier to transmit personal data between platforms
   • Data subjects can obtain personal data held by data controllers
   • Free to store, reuse, or transmit personal data to another data controller
   • Available in a clear and understandable way
• Provide consumer’s data “in a structured, commonly used and machine-readable format”
   • Personal data provided to a data controller or generated by automated means

Industry Solution: Data Transfer Project (DTP)
       Launched in 2018 by Apple, Facebook, Google, Microsoft, Twitter

• Open-source, service-to-service data portability platform
   • Uses services’ existing APIs and authorization mechanisms to access data
   • Then service-specific adapters                                                       to
        transfer that data into                                                     common
        format

   • And then back into the new
        service’s API

• Current status: Facebook/Google
   Photos portability (June, 2020)
Source: Data Transfer Project White Paper (July 20, 2018). “Data Transfer Project
     Overview and Fundamentals”. Accessed August 30, 2020 at https://
                   datatransferproject.dev/dtp-overview.pdf

O-RAN
Additional interface specs to open up 5G radio access networks

• Created by O-RAN Alliance (founded by 5 mobile operators) to disaggregate
  system established by 5G specs developed within 3rd Generation Partnership
  Project (3GPP)

  • Specify interfaces to enable “open, interoperable supply chain ecosystem …
    complimentary to standards promoted by 3GPP”

  • Implemented in vendor-neutral hardware and software-defined technology
• Goal to avoid “lock-in” effect where proprietary implementations inhibit
  supplier competition and enable more diversity in suppliers and lower costs

• Policy focus: suppler diversity also enables better network security

Issues to consider…
When an API is mandated by law or regulation

• Generally accepted that interoperability requirements are useful tool to address competitive issues due
  to strong network effects

   • Different APIs considered for different market failures (e.g., unbundling for natural monopoly,
     electronic guides for set-tops, etc…)

   • Or for network interfaces to encourage competitive vendor markets (e.g., O-RAN, DOCSIS, etc…)
• Different options to achieve policy objectives for interoperability
   • Specific designation of an existing/new API from an accredited standards body (e.g., JSON for
     personal data)

   • Required interoperability with existing, proprietary APIs of existing platforms (e.g., Time Warner/AOL
     merger required interoperability with other instant messaging platforms)

   • Required availability of data formatted in any “technically feasible” format (GDPR/CCPA)

Issues to consider… (cont’d)
When an API is mandated by law or regulation

• Can “best practices” for APIs be identified and utilized in any useful way?
  • DTP cautions against “inconsistent API landscape”: Some firms lack open API or don’t
     maintain

  • Lack of uniform policy objectives and context driving API selection
• Lack of uniform theory and approach to standardization of software APIs
  • “Open” APIs often open source with divergent approaches (e.g., Linux Foundation vs. Solid)
  • Customization of APIs due to application focus on underlying/lower layer support services
  • Can isology theory provide useful guidance on adaptable API structures to enhance
     interoperability properties in support of policy objectives?

  • If so, how can adaptability be encouraged or required into API mandates?

Closing Thoughts
Role of APIs in regulation

• Cautionary tales when violating the principle of technology neutrality in public policy
  • Stated policies (not regulation) favoring interoperability could be useful in spurring
     industry efforts

  • Then establishes significance of market failures if needed interoperability fails to emerge
• Cost benefit analysis necessary, and very difficult to perform
• Need further research on whether best practices for APIs in policy context can be identified
  • Application context, types of data or API structure, security, and relevant standards
     body may all be key factors of consideration

• Important benefit of APIs — inherent flexibility — may be largest concern in policy context

Many questions, few answers!
Regulatory agencies actively exploring these issues

• FCC holding Forum on 5G Open Radio Access Networks on September 14,
  2020

  • Promote American leadership in next generation wireless services
  • Develop roadmap
• FTC holding Data To Go: An FTC Workshop on Data Portability on September
  22, 2020

  • Examine benefits/challenges to consumers and competition raised by data
    portability