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Competition: The use of Big Data technologies brings competitive advantages to companies

4 December 2020
General Interest
energynomics

Bogdan Tudorache

The use of Big Data technologies brings competitive advantages to companies, such as adjusting, in real time, the price level to changes in the ratio between supply and demand, but can also lead to anti-competitive behavior, says the Competition Council.

The study on the effects of the use of Big Data platforms on competition by the Competition Council identifies potential risks to the competitive environment of the use of Big Data technologies. For example, by using identical algorithmic models and a common database, companies can align their prices in real time with those of competitors and thus artificially maintain high price levels, to the detriment of consumers. Competition in the market may also be restricted by restricting or refusing access to data for competitors or by making access to data conditional on the use of their own analysis services.

“In this context, it is absolutely necessary to be able to respond to new technological challenges and to keep up with the clear advance of companies in this area of interest. As a result, in order to face the challenges generated by the accentuated development of the business environment, at present, we are implementing our own information system based on BigData technologies,” said Bogdan Chirițoiu, president of the Competition Council.

The analysis of the competition authority showed that Big Data technologies are widely used by digital platforms that mediate alternative passenger transport (ride-hailing), but also in the communications sector and by large retailers, but much less used in the banking sector, in price comparison platforms and in e-commerce.

The Romanian data market (in which digital data is marketed in the form of products or services) registered an increase in the period 2013-2019, the average annual compound growth rate (CAGR) being 26.4%, well above the European average (CAGR 7.4%). This indicates an orientation of the economy towards the use of Big Data technologies, the introduction of artificial intelligence and a continuous process of digital transformation. Thus, the number of data providers increased significantly, from approximately 2,400 in 2013 to 5,750 in 2019.

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