Abstract
The aim of the paper is to present an insight into the challenges raised by digitalized and data-driven markets to competition policy and enforcement in the Big Data era. Focusing on the assessment of information exchange in the digitalized environment, traditional risk factors are analyized and it is argued that new risk factors can be identified. The paper provides an overview of relevant recent Hungarian case-law to examine the role of information exchange, taking place in a data environment that offers an increased amount of up-to-date and relevant market information for analysis. Further, the paper summarizes the enforcement responses to the demandside challenges raised by online platforms, user interfaces applying new approaches and practices that can directly influence consumer behavior. The consequence is drawn that the extended economic and IT-related argumentation may affect the nature of proceedings and some new phenomena, as the role of secondary intermediaries, integration of online and offline market segments open new fields for assessment.
Highlights
Datafication, digitalization, data-driven markets, online platforms, digital economy; practically, these expressions are used in every segment of the economy, signalling that data defines the rapidly changing economic landscape, digital technologies are diffused in business processes
Product digitalization is creating new markets and is fundamentally changing data-driven business models, which are simultaneously generating new organizational structures, working methods. These parallel processes result in new channels and context in the communication with buyers, consumers, customers, clients, users and employees (Preta and Maggiolino, 2018). Some digital tools, such as software-based algorithms1, enormous structured and unstructured databases, and access to Big Data play a key role in improving pricing models, providing products and services tailored to consumers, and predicting market tendencies
Digitalization has obvious benefits affecting each sector of the economy, new methods of collecting and analyzing data raise competition law concerns on the grounds that data acts in the digitalized markets as a new factor determining market power and market transparency
Summary
Datafication, digitalization, data-driven markets, online platforms, digital economy; practically, these expressions are used in every segment of the economy, signalling that data defines the rapidly changing economic landscape, digital technologies are diffused in business processes. Product digitalization is creating new markets and is fundamentally changing data-driven business models, which are simultaneously generating new organizational structures, working methods These parallel processes result in new channels and context in the communication with buyers, consumers, customers, clients, users and employees (Preta and Maggiolino, 2018). Some digital tools, such as software-based algorithms, enormous structured and unstructured databases, and access to Big Data play a key role in improving pricing models, providing products and services tailored to consumers, and predicting market tendencies. Through the legal prism of Hungarian competition law enforcement, we will look at two key characteristics of digital economy from the practitioners’perspective: (i) information exchange taking place in a data environment that offers an amount of fresh and relevant market information for analysis, which would have been unimaginable in the past; (ii) online platforms, user interfaces applying new approaches and practices (for example, algorithm-based decision-making) that can directly influence consumer behavior
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