The nexus between Big Data and Competition Law

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The nexus between Big Data and Competition Law

Date \| Version	June 21, 2022 \| 1.0
Authors	Kunal Lohani, Sr. Associate Richa Bhandari, Associate
Keywords	Big Data, Dominant Position, Abuse of Dominance, Relevant Market
List of Legislation Referred	The Competition Act, 2002
Jurisdiction	India

Abstract

This write-up examines the concept of Big Data and its growing commercial value in the digital economy, particularly in light of the provisions of the Competition Act, 2002.

Introduction

The role and value of data have evolved significantly with the rapid shift from traditional markets to digital platforms. While the collection and analysis of data have long been used to improve products and services, the increasing concentration of large volumes of data in the hands of a few digital enterprises has raised important competition law concerns.

Big Data generally refers to large and diverse volumes of information that are collected, processed and analysed to generate valuable insights regarding consumer behaviour, preferences and market trends. Such information enables businesses to improve decision-making and strengthen their competitive position in the market.

However, the accumulation of vast data sets by dominant digital enterprises may create barriers to entry, reduce competition and potentially result in abuse of dominance. The Competition Act, 2002 prohibits enterprises from abusing their dominant position in a relevant market and empowers the Competition Commission of India (CCI) to examine such conduct.

The article discusses the concepts of relevant market, dominance and abuse of dominant position in the context of digital markets. It also analyses important competition law developments involving technology platforms, data-driven market power, algorithmic conduct and the growing regulatory focus on digital markets.

The article concludes by highlighting the need for stronger regulatory scrutiny of digital markets and recognising data as a significant factor in assessing market power and competitive behaviour in the modern economy.

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The nexus between Big Data and Competition Law

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