Competition Law Assessments in Big-Data Merger Reviews

Abstract

It is hardly news to note that companies around the world have recently engaged in an escalating arms race with respect to data collection and that they have been using data collection and processing as a major growth strategy. The quickest and most efficient way for undertakings to access significant amounts of useful data is to conduct M&A transactions with other companies that do have such data in their possession.

This article will provide an overview of both the positive and the negative effects of big-data mergers, by counterweighing their possible competition law risks against their efficiency gains. It will then analyze the merger control review of data-driven transactions based on the precedents of the European Commission and the Federal Trade Commission, and then assess whether the current competition law tools are sufficient and suitable for catching potential infringements in data-driven mergers and for regulating “Big Data” M&A transactions. This article will also include discussions on to what extent privacy concerns should be included in the assessment of M&A transactions under competition law rules.

Keywords: big data, mergers, merger control, antitrust

JEL Classification: K21, L40