Big Data and Legislation on Competition

Abstract

Global accessibility to the Internet and the exponential growth of compute capacity have caused thespread 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 indigital Internet markets raised the question on the potential influence on the competition merger andacquiring control over big data. Indeed, companies can involve advanced computer technologies tocoordinate business practices, impose abusive conditions for consumers, applying compelling marketpower to set higher prices or even possible closing the market for new market-players. Net effectsbased on the data tend to become stable promoting to the efficiency of the current market-players allowingthem to strengthen their positions as soon as the critical mass of users is reached. Compensatingthe advantages of big data by potential costs for society depends on the ability of antimonopoly bodiesand 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 ora sharp growth of economic concentration leading to the abuse of market power and stagnation. Thepaper proposes the definition of big data and describes the main types of the influential factors andtopology of market big data ecosystem. The paper reveals possible problems for competition due tobig data and examines their potential influence on the efficiency of the current instruments of competitionand the main activities of antimonopoly bodies, struggling against cartels, evaluation of abuse by domination and control of mergers.