The identification of market power in the Big Data Sector Summary

View more insights in Research Shorts - Law

View more figures from Faculti

Next in Law

Online homophobia from the perspectives of LGBTQ+ social media users

Racial bias as a multi-stage, multi-actor problem: Analysis of pretrial detention

Reappraisal of the current status quo in relation to the interface between market power and the application of competition law to the Big Data market, with the view to suggesting possible alternative approaches.

Image courtesy of interviewee. July 5, 2024

Generating Workspace...

Export as PDF

The video discusses the relationship between market power and big data, presenting a competition law perspective. It critiques traditional neoclassical theories as inadequate for assessing market power in the big data economy and advocates for new analytical tools and paradigms. Using eBay as an example, the video highlights how massive data processing from seller-buyer interactions can create feedback loops and network effects, complicating competition law assessment and raising antitrust concerns.

It outlines the current European competition law's goals of preventing market distortions and dominant position abuses while emphasizing the need for a new approach to evaluate big data's impact on competition. The video also addresses the database directive, which protects investments in database compilation.

The proposed framework for assessing market power in the big data sector includes analyzing network effects and user numbers, assessing economies of scale and data replicability, and focusing on market contestability traits. The aim is to determine whether an entity holds market power and how it affects competition in the market.

Language:

Export as PDF

X-TIMESTAMP-MAP:LOCAL=00:00:00.000,MPEGTS=900000

00:00.000 --> 00:01.565
This video discusses the concept

00:01.665 --> 00:04.365
of market power in relation to big data

00:05.345 --> 00:07.845
and how it poses a competition law question.

00:08.585 --> 00:09.605
The author suggests

00:09.605 --> 00:12.965
that traditional neoclassic theories may not be sufficient

00:12.965 --> 00:15.285
for assessing market power in the big data economy

00:15.985 --> 00:17.925
and argues for the development of new tools

00:17.925 --> 00:21.925
and paradigms to address this issue using eBay

00:21.925 --> 00:25.045
as an example, the author explains feedback loops

00:25.045 --> 00:26.725
and network effects in such markets.

00:27.145 --> 00:30.005
eBay's processing of massive data from seller buyer

00:30.005 --> 00:32.245
interactions can impact advertising,

00:32.965 --> 00:35.525
creating a paradigm shift in competition law assessment.

00:36.755 --> 00:39.805
This introduces complexity due to network effects

00:39.905 --> 00:43.245
and feedback loops with potential antitrust implications.

00:44.345 --> 00:46.765
The current European competition law aims

00:46.765 --> 00:50.085
to prevent market distortions, abuses of dominant positions,

00:50.225 --> 00:51.885
and consolidation of market power.

00:52.595 --> 00:53.685
Assessing the impact

00:53.685 --> 00:56.765
of big data on competition requires a new approach

00:56.765 --> 00:57.885
within this framework.

00:58.585 --> 01:00.965
The video discusses the database directive,

01:01.055 --> 01:03.685
which confirms protection for undertakings

01:03.685 --> 01:06.805
that compile specific databases in terms

01:06.805 --> 01:08.845
of intellectual property and investments.

01:09.705 --> 01:13.085
The contestability theory is also highlighted, emphasizing

01:13.085 --> 01:14.365
that a market without barriers

01:14.665 --> 01:18.445
to entry allows other undertakings to freely access it.

01:19.265 --> 01:22.205
All of this is relevant to the big data sector aiming

01:22.205 --> 01:24.045
to devise a market assessment for it.

01:24.945 --> 01:26.885
The proposed new framework involves one,

01:26.995 --> 01:29.285
analyze network effects and the number of end users.

01:30.025 --> 01:33.805
Two, assess economies of scale and replicability of data,

01:34.425 --> 01:36.965
and three, focus on contestability traits

01:36.985 --> 01:38.125
of the big data sector.

01:38.345 --> 01:41.765
The goal is to determine if an undertaking has market power

01:42.025 --> 01:44.885
and impact on competition in the specific market.

"Reassessing Market Power and Competition Law in the Age of Big Data: Implications and New Paradigms"

00:00:00 - This video discusses the concept of market power in relation to big data and how it poses a competition law question. The author suggests that traditional neoclassic theories may not be sufficient for assessing market power in the big data economy and argues for the development of new tools and paradigms to address this issue using eBay as an example, the author explains feedback loops and network effects in such markets. eBay's processing of massive data from seller buyer interactions can impact advertising, creating a paradigm shift in competition law assessment. This introduces complexity due to network effects and feedback loops with potential antitrust implications.
00:00:46 - to prevent market distortions, abuses of dominant positions, and consolidation of market power. Assessing the impact of big data on competition requires a new approach within this framework. The video discusses the database directive, which confirms protection for undertakings that compile specific databases in terms of intellectual property and investments. The contestability theory is also highlighted, emphasizing that a market without barriers to entry allows other undertakings to freely access it. All of this is relevant to the big data sector aiming to devise a market assessment for it.
00:01:42 - analyze network effects and the number of end users. Two, assess economies of scale and replicability of data, and three, focus on contestability traits of the big data sector. The goal is to determine if an undertaking has market power and impact on competition in the specific market.

Faculti AI can make mistakes

Research

Policy

Analysis