The Big Data Relevant Market

Abstract

Big Data can be understood as the ability to collect, process and analyze a large volume and a wide variety of data in sufficient length of time to obtain information that give the holder the capacity to establish business strategies. In some situations, Big Data can be characterized as an essential facility, providing its owner with market power and even a dominant position to unilaterally interfere in the functioning of the market. Big Data are notoriously identified by six V's, namely: its (i) volume; (ii) velocity; (iii) variety; (iv) value; (v) veracity; and (vi) validation. On the other hand, competition in the digital economy or markets has its own characteristics, which includes trends as winner takes it all, network effects, two-sided and multi-sided markets or platforms, fast-paced innovation and high sums of investment. Considering the digital economy and the constant changes imposed by technological innovation, the definition of the relevant market of Big Data, lato sensu, allows to understand the market structure and related issues to competition as mergers and acquisitions, market power, abuse of dominance, and therefore, to the consumer. However, Big Data relevant market cannot be defined in general, once for all. Looking at the “process” of Big Data, which starts with the capture of data and ends with the use of the information generated by those data, allows for a better understanding and a more refined definition of the relevant market(s). It follows that the Big Data relevant market can be segmented into three parts, where in fact the process of Big Data actually takes place, namely: (i) Big Data capture; (ii) Big Data storage; and (iii) Big Data analytics.

Keywords: Big Data; Relevant Market; Competition Law; Digital Economy; Platforms

JEL Classification: L4