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Big Data and Competition Policy by Stucke, Maurice; Grunes, Allen (1st June 2016)

Part IV What are the Risks if Competition Authorities Ignore or Downplay Big Data?, 10 Importance of Entry Barriers in Antitrust Analysis

Maurice E. Stucke, Allen P. Grunes

From: Big Data and Competition Policy

Maurice Stucke, Allen Grunes

From: Oxford Competition Law (http://oxcat.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 21 May 2019

Subject(s):
Barriers to entry — Market power — Rights — Internet — Technology

This chapter describes the importance of entry barriers in antitrust analysis. A key issue is whether entry barriers are sufficiently low to alleviate concerns about adverse competitive effects. Some argue that data does not lend itself to entry barriers. The Organisation for Economic Co-operation and Development (OECD), for example, noted three trends underlying data-driven innovation: the exponential growth in data generated and collected; the widespread use of data analytics including by start-ups and small and medium enterprises (SMEs); and the emergence of a paradigm shift in knowledge creation and decision-making. Others, however, claim that online markets are notable for their low entry barriers and typically do not require big data for entry. The merging parties or dominant firm may use the traditional factors that the agencies consider to argue that entry barriers are generally low in that online industry.

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