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VOL. 11, ISSUE 9 (2025)
Data as a source of market power: Competition law challenges in the age of AI and Big Data
Authors
Dr. Mahipal Lather
Abstract
In the contemporary economy, data functions as a central strategic input.
In markets shaped by digitalisation and artificial intelligence, access to
large, diverse, and continuously updated datasets lowers error rates, improves
predictive accuracy, and reinforces network effects that can shape competitive
dynamics. This paper investigates the ways in which data can generate or
entrench market power, the forms in which that power is expressed, and the
extent to which competition law and related regulatory frameworks should
intervene. Drawing on both economic analysis and recent enforcement activity,
it develops a framework for evaluating data advantages across five dimensions,
namely scale, scope, speed, substitutability, and sensitivity. The discussion
extends to questions of market definition, dominance, and abuse in data-heavy
sectors, emphasising the limits of price-focused tests and highlighting the
importance of non-price factors such as quality and privacy. Particular
attention is given to recent decisions of the Competition Commission of India
(CCI), including significant orders against Google, the introduction of a
settlements and commitments mechanism in 2024, and the adoption of a “deal
value” threshold in merger control aimed at capturing data-driven acquisitions.
India’s evolving model is contrasted with the European Union’s Digital Markets
Act and the United Kingdom’s Digital Markets, Competition and Consumers Act,
with lessons drawn from the UK’s cloud services inquiry into switching
frictions such as egress fees. The paper concludes by outlining an enforcement
and regulatory toolbox. This includes stricter merger scrutiny for data assets,
limited access obligations resembling FRAND terms, measures to strengthen
portability and interoperability, constraints on self-preferencing and data
combination, support for pro-competitive data intermediaries, and mechanisms to
monitor algorithmic collusion. The argument advanced is that competition policy
should avoid both extremes: data should neither be assumed to produce automatic
monopolisation nor be overlooked as a potential source of exclusion. Instead, a
careful and evidence-driven approach is required to safeguard rivalry while
maintaining commitments to privacy and security.
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Pages:19-23
How to cite this article:
Dr. Mahipal Lather "Data as a source of market power: Competition law challenges in the age of AI and Big Data". International Journal of Law, Vol 11, Issue 9, 2025, Pages 19-23
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