Big Data and Legislation on Competition

Abstract

Global accessibility to the Internet and the exponential growth of compute capacity have caused the spread of business models collecting and generating big data. Reliable intellectual analysis of data and computer-assisted teaching allows companies to offer tailor-made special solutions. The current algorithms of self-education enable to find accurate information online within seconds. However, the advantages may be neutralized by serious disadvantages. The recent high-profile M&A transactions in digital Internet markets raised the question on the potential influence on the competition merger and acquiring control over big data. Indeed, companies can involve advanced computer technologies to coordinate business practices, impose abusive conditions for consumers, applying compelling market power to set higher prices or even possible closing the market for new market-players. Net effects based on the data tend to become stable promoting to the efficiency of the current market-players allowing them to strengthen their positions as soon as the critical mass of users is reached. Compensating the advantages of big data by potential costs for society depends on the ability of antimonopoly bodies and regulators respond to the new challenges of digital economy. It is possible to shape new more competitive adversary and dynamically developing markets with efficient and permanent innovations or a sharp growth of economic concentration leading to the abuse of market power and stagnation. The paper proposes the definition of big data and describes the main types of the influential factors and topology of market big data ecosystem. The paper reveals possible problems for competition due to big data and examines their potential influence on the efficiency of the current instruments of competition and the main activities of antimonopoly bodies, struggling against cartels, evaluation of abuse by domination and control of mergers.