Data-driven mergers from a privacy and competition law perspective

Abstract

In a digitalised economy, data is perceived as the oil of the Internet. It contributes to the creation of a competitive and well-functioning market that satisfies consumer needs in a fair and efficient manner. Data-driven mergers may grant merged undertakings access to large volumes of data, enabling them to derive a greater advantage within the relevant market they operate in. Albeit advantages, such mergers can possibly give rise to certain detrimental effects that impact the relevant market and the consumers alike. Data constitutes a valuable asset to both undertakings and consumers. Therefore, it is necessary for authorities to safeguard the market from anti-competitive behaviour whilst ensuring that the collection, distribution and use of the consumers’ personal information does not breach their fundamental right to privacy and consumer protection. In the process of data-driven mergers, data may be easily mishandled because of the changes in the organizational structure of the market. Due to increasing awareness within society on how consumer data is being handled, the extent to which such data is protected has become a key aspect in determining how the value of data. It is necessary to regulate mergers so as to ensure competition within the EU internal market and the protection of the consumers’ right to privacy and consumer protection. The main concern when it comes to regulating such volatile issues is finding a way to keep the law relevant and up to date. Essentially, mergers are not intrinsically harmful and therefore, they cannot and should not be outright prohibited. Therefore, competition law and data privacy law must be applied simultaneously in order to regulate data-driven mergers in such a manner that safeguards both competition within the EU’s internal market as well as consumers and their right to data privacy.