Regulating Data Giants: Between Competition Law and Data Protection Law

Abstract

In recent years, advancements in digital technologies have brought many advantages for consumers and citizens. At the same time, consumers share vast and increasing amounts of personal data in the digital era. As concerns regarding privacy increase, so do the number of businesses whose business model revolves around personal data. Many of these businesses are platforms, which due to the inherent network effectsNetwork effects often have considerable market powerMarketpower. The combination of powerful and data-rich platforms has gained the attention of competition authorities. Big Data played a central role in various recent competition law cases, such as the Facebook/WhatsappFacebook/WhatsApp merger, the DoubleClick/Google merger and the Bundeskartellamt’s abuse of dominanceAbuse ofdominance probe into Facebook. This paper critically assesses to what extent competition law can address the concerns in digital marketsDigitalmarkets. It argues that, while privacy concerns may be particularly pervasive in relation to firms with market powerMarketpower, the solution for privacy concerns is likely to lie in data protectionDataprotection law rather than competition law. In cases where, instead, market powerMarketpower based on data is the reason for concern, competition authorities may be better apt to intervene.