The role of consumer data in the enforcement of EU competition law

Abstract:

The EU competition watchdog is increasingly being called upon to deal with cases involving firms that rely heavily on the collection and processing of consumer data. While several decisions explicitly mention that access to large reserves of customer information may affect the competitive process, the European Commission has meticulously refrained from examining concerns that may arise from data-related practices. This hands-off approach may be attributed to the choice of the Commission to ignore the specific conditions of data-driven markets in an attempt to avoid tackling controversial practices the effects of which are not easily measurable. A cautious approach that seeks to sidestep the negative implications of over-enforcement may benefit fast-moving markets. However, ’quick fixes‘ and failure to take account of the specific conditions that determine how data-driven markets work in practice run the risk of producing erroneous results, to the detriment of competition and consumer choice.