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Licensed Unlicensed Requires Authentication Published by RWS-Verlag December 7, 2017

Big Data and Competition Law

  • Maren Tamke

Abstract

The emergence of Big Data in the digital economy and its corresponding impact on competition law has led to considerable debate in Europe over the last few years. A key concern for competition agencies is the potential harm that might be caused by a company’s ability to acquire datasets that other industry players cannot replicate. It is feared that the control of data may enable these firms to strengthen their market positions and to engage in anticompetitive behaviour, which could deprive consumers of the potential benefits that Big Data offers. Specifically, dominant companies might use Big Data to limit competition or to exploit consumers. In addition, tacit or explicit collusion amongst competitors could be facilitated by greater market transparency and the increasing application of algorithms. In future data-related transactions the potential aggregation of large datasets might also lead to greater scrutiny on the impacts of Big Data and the potential it might have to erect barriers to entry in the specific market and prevent viable competition. As such, regulators and policy makers are contemplating new approaches to ensure that data-related transactions that could significantly impede effective competition do not escape merger control scrutiny. This article considers these potential impacts of Big Data in competition law and outlines the key issues that might need to be addressed.

Abstract

Big Data and Competition Law

Big Data in the digital economy and its impact on the assessment of market power and on a company’s competitive position is an important topic that is currently the subject of considerable debate in Europe. While the use of Big Data undoubtedly has pro-competitive effects and has led to substantial benefits for consumers, the accumulation and use of data may also result in companies obtaining significant market power especially due to the distinct characteristics of the new digital economy. In particular, concerns exist that dominant companies could use Big Data to foreclose competitors or to adopt abusive exclusionary, exploitative or discriminatory conduct. The increased market transparency, in particular, on prices in digital markets as well as the use of algorithms might also facilitate collusive behaviour. Equally, data-related transactions resulting in an aggregation of large datasets might raise concerns that other competitors might be prevented from obtaining access to data leading to barriers to entry following a merger. The article outlines the key competition issues surrounding Big Data. It is argued that no regulation in this area is required as current competition law can be adapted to address any potential competition concerns.

Published Online: 2017-12-7
Published in Print: 2017-12-7

© 2017 RWS Verlag Kommunikationsforum GmbH, Aachener Str. 222, 50931 Köln.

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