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

Part V Advancing a Research Agenda for the Agencies and Academics, 18 Data-opoly: Identifying Data-Driven Exclusionary and Predatory Conduct

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: 17 November 2019

Subject(s):
Market power — Rights — Internet — Technology

This chapter explores the issue of path dependence and competitive portals—critical inflection points where antitrust can make a key difference by focusing on data-driven anticompetitive exclusionary and predatory behaviour. Competition law can deter exclusionary and predatory practices and keep competitive portals. Big Data enhances this as it can confer power and a durable competitive advantage. This works in hand with data-driven network effects which improve product or service quality. At times, consumers benefit from this competitive rivalry and drive to maintain a data advantage. Companies innovate to expand their platform of services to secure a greater following. But when the stakes are greater, so too are the incentives to engage in unfair practices to tip the market to the company’s favour and maintain a monopoly. Consequently, competition authorities must be alert to dominant companies’ unfair practices aimed at thwarting competitors and disrupting innovators. The chapter outlines several potentially anticompetitive data-driven tactics.

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