A Reflection on the Relationship between Big Data ‎and Market Power in Platform Markets from the ‎Perspective of the Latest Developments in ‎Competition Law

Market power is one of the most important notions and elements in analyzing the competitive practices of undertakings in markets which means the power of an undertaking to manipulate prices above the competitive level, limit production, and provide services in a significant way, and the ability of taking strategies to restrict and eliminate competition or create barriers to entering into the market. In parallel with the expansion of platform markets and the prominence of the role of data and AI, the issue of market power in the field of competition law has confronted new challenges. Regarding the characteristics of platform markets, the main question of the current research is to what extent big data can be considered as a source of market power and to how can the new strategies and approaches of competition law in digital markets, evaluate the relationship between big data and market power? Having analyzed the approaches of the most influential systems of competition law in the light of the latest developments, the present paper in descriptive-analytical research method is going to survey different opinions that accept a direct relationship between access to big data and market power, comparing it with assessments that deny it and in the final evaluation process, from an analytical point of view regarding the latest evolution in competition law, appraise the proposed opinions and comments to find out when big data may result in market power and, consequently, the necessary and related competition law norms should be applied. Examining the subject, this research notes the role of blockchain in adjusting the market power originating from big data and looks into the current approaches of Iranian competition law. The results of this paper show that in platform markets, the usual norms of competition law cannot overcome the competition challenges of big data effectively. Considering the reasons and considerations raised by the proponents and opponents of the existence of a relationship between big data and market power tips the balance in favor of those who believe that this relationship exists; However, although big data may be regarded as a source of market power, a definitive and direct relationship between them is not conceivable, and a comprehensive analysis of the subject depends on particular condition of the markets and the current and future developments of the platform markets. In addition to paying attention to the characteristics of the relevant platform markets, especially the type of barriers to entering digital markets or network effects, taking into account the exclusive or non-exclusive character of the data, the position, and the ability of undertakings to gather, processing and use them by employing AI, using the outputs in targeted advertising and making profits from big data, the contribution of big data in improving or strengthening the company's market position, their role in facilitating likely anti-competitive practices, especially the abuse of a dominant position, innovation considerations and the need to respect the creative efforts of undertakings in platform competition process is necessary. Although revolutionary technologies such as blockchain have succeeded in adjusting the market power made by big data and will play a greater role in this field in the future, according to the actual realities of platform markets, they currently do not have a great impact on the competition environment and gatekeeper undertakings are still have excessive control over the data of personal and business users, which has provided them with the opportunity to make obstacles to entry into the market and commit anti-competitive behaviors. Accordingly, the necessity of competition authorities' control over them by revising some usual norms of competition law is necessary. Considering the new entrance of competition law in Iranian legal systems and the complex competition issues of digital markets, it is obvious that there is more opportunity for big platforms to use big data in forming undue market power and restricting competition for other undertakings.  The approach of the new documents in regulating the subject needs serious comments from different points of view and requires significant revision, adjustment, and expansion; in such a way that guarantees the competitive freedom of gatekeeper platforms that can play an important role by employing big data in providing new or improved services and products, intensifying competition and ensuring the welfare of users, and the need to prevent the abuse of market power, limiting the possibility of committing anti-competitive practices and eliminating small competitors and start-ups, a kind of reasonable balance should be established in the light of attention to the developments of modern competition law.