The identification of market power in the Big Data Sector Summary

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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

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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.

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

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This video discusses the concept

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of market power in relation to big data

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and how it poses a competition law question.

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The author suggests

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that traditional neoclassic theories may not be sufficient

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for assessing market power in the big data economy

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and argues for the development of new tools

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and paradigms to address this issue using eBay

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as an example, the author explains feedback loops

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and network effects in such markets.

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eBay's processing of massive data from seller buyer

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interactions can impact advertising,

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creating a paradigm shift in competition law assessment.

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This introduces complexity due to network effects

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and feedback loops with potential antitrust implications.

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The current European competition law aims

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to prevent market distortions, abuses of dominant positions,

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and consolidation of market power.

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Assessing the impact

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of big data on competition requires a new approach

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within this framework.

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The video discusses the database directive,

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which confirms protection for undertakings

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that compile specific databases in terms

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of intellectual property and investments.

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The contestability theory is also highlighted, emphasizing

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that a market without barriers

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to entry allows other undertakings to freely access it.

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All of this is relevant to the big data sector aiming

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to devise a market assessment for it.

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The proposed new framework involves one,

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analyze network effects and the number of end users.

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Two, assess economies of scale and replicability of data,

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and three, focus on contestability traits

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of the big data sector.

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The goal is to determine if an undertaking has market power

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and impact on competition in the specific market.

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

00:15 - 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. The current European competition law aims

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

01:13 - 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. The proposed new framework involves one, 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

01:42 - and impact on competition in the specific market.

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