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Cyril Ritter
European Commission, DG COMP
OECD, 29 November 2016
EU competition law,
personal data,
and big data
Background
• Two claims by some stakeholders: some large online service
providers
– are not delivering level of data protection/privacy that
people want
– are gaining an insurmountable advantage by
accumulating big data
• If these claims are true, can and should EU competition law
address them?
• Other concerns better addressed primarily through other
policies than competition law: profiling, hacking
2
Main milestones
• 2006: Asnef judgment
– Data protection "as such" = not relevant to competition case
• 2008: Google/Doubleclick merger decision
• 2014: Facebook/WhatsApp merger decision
• 2016: Commissioner Vestager's speeches; merger consultation
3
What data? What uses of data?
• Personal data = identifies any individual through any parameter
• Not all big data is personal data
• Big data  useful to improve services
• Personal data  useful for targeted advertising
4
"Zero price" markets
• Covered by EU data protection law & consumer protection law
• Importantly, also covered by EU competition law
– 1991 Höfner judgment
– Competition law = price, quality, output, choice, &
innovation
– Many EU competition decisions on "zero price" markets
• Market definition usually not a problem in practice 5
Viewing data through four different
perspectives
• Data as a currency
• Data protection as quality (= mostly about personal data)
• Data as an input/asset (= mostly about big data)
• Data as an output
6
Data protection as quality
• Cartel
• Exploitative abuse
• Merger
7
Data as an input/asset
• Addressing the "data advantage" through abuse or merger cases
• But when is there a "data advantage"?
– Is data a key element of the success of the product?
– Is it about the data or the ability to analyse data?
– Is the data replicable or available from other sources?
Does it experience decreasing returns?
– How quickly does the data become outdated?
8

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Big data: Bringing competition policy to the digital era – EU DG COMP – November 2016 OECD discussion

  • 1. Cyril Ritter European Commission, DG COMP OECD, 29 November 2016 EU competition law, personal data, and big data
  • 2. Background • Two claims by some stakeholders: some large online service providers – are not delivering level of data protection/privacy that people want – are gaining an insurmountable advantage by accumulating big data • If these claims are true, can and should EU competition law address them? • Other concerns better addressed primarily through other policies than competition law: profiling, hacking 2
  • 3. Main milestones • 2006: Asnef judgment – Data protection "as such" = not relevant to competition case • 2008: Google/Doubleclick merger decision • 2014: Facebook/WhatsApp merger decision • 2016: Commissioner Vestager's speeches; merger consultation 3
  • 4. What data? What uses of data? • Personal data = identifies any individual through any parameter • Not all big data is personal data • Big data  useful to improve services • Personal data  useful for targeted advertising 4
  • 5. "Zero price" markets • Covered by EU data protection law & consumer protection law • Importantly, also covered by EU competition law – 1991 Höfner judgment – Competition law = price, quality, output, choice, & innovation – Many EU competition decisions on "zero price" markets • Market definition usually not a problem in practice 5
  • 6. Viewing data through four different perspectives • Data as a currency • Data protection as quality (= mostly about personal data) • Data as an input/asset (= mostly about big data) • Data as an output 6
  • 7. Data protection as quality • Cartel • Exploitative abuse • Merger 7
  • 8. Data as an input/asset • Addressing the "data advantage" through abuse or merger cases • But when is there a "data advantage"? – Is data a key element of the success of the product? – Is it about the data or the ability to analyse data? – Is the data replicable or available from other sources? Does it experience decreasing returns? – How quickly does the data become outdated? 8