Big Data Mergers: An Analysis of European and Indian Competition Law Regime

Abstract

In a digitally dominated economy, big data plays an integral role in furthering a company’s commercial interest and is processed by firms to understand how to provide better products and services to consumers. To substantially enhance the datasets available with a business, mergers and acquisitions between entities have become common in recent times. While such growth increases the potential of innovations and enhances the economic growth of the merged entity, it also brings to light various antitrust dilemmas. The paper discusses the competitive implications of such deals in the light of the European and Indian competition regimes. The European competition regulator has significantly contributed to the growth of the competition regime. With a few companies threatening to monopolize the European economy, it has become extremely vigilant in handling big data mergers. The Indian competition laws are at a nascent but are rapidly evolving stage and have been following the European competition approach to tacking big data mergers while keeping in mind any unique challenges posed by the Indian markets. The paper also analyzes the various competition and allied issues that competition regulars consider while approving big data deals. Data privacy and consumer welfare are two issues that are becoming increasingly intertwined with competition law. The recent Google/Fitbit deal is an instance of the same, where privacy of health data concerns and consumers’ welfare are two parameters that competition regulators consider. Lastly, the article examines the lacuna in merger control of big data deals in India. It discusses the provisions added in the forthcoming 2020 amendment in the Indian Competition legislation to overcome the challenges posed by big data mergers and promote competition in markets.