The role of big data in influencing market power

Jia-Lee Lim

Competition and Consumer Law Journal

Jia-Lee Lim, ‘The role of big data in influencing market power: An investigation into the impact of strategic mergers and acquisitions in digital markets’ (2020) 27(3) Competition and Consumer Law Journal 211

Abstract

Recent mergers such as Google–DoubleClick and Facebook–WhatsApp have given rise to discussion about the role data plays in influencing market power. While some commentators raise concerns about the implications of Big Data on competition in digital markets, others attach little importance to the possession and control of Big Data in assessing market power. This article supports the former camp of commentators, arguing that Big Data is one of the most important 21st century commodities and thus, through strategic mergers and acquisitions, companies are able to gain control over Big Data, enabling them to entrench their position in the market. This article hopes to answer questions about why access to Big Data is an important indicator of market power, and how its possession and control are capable of substantially lessening competition.