Big tech's data advantage and opaque algorithms threaten fair competition: CCI’s Ravneet Kaur
Kaur advocated the need for new analytical tools and the development of a novel regulatory framework that keeps pace with technological advancements.
India's antitrust watchdog is sounding the alarm about the growing power of big tech companies. Speaking at CCI (Competition Commission of India)’s 15th Annual Day celebration, chairperson Ravneet Kaur highlighted two key issues including lack of transparency and the dominance of large tech companies due to their vast data reserves.
“Control over large data sets can create insurmountable barriers to entry for new players. One of the most important features of the digital market is the tendency towards market concentration. And many digital platforms benefit from network effects where the value of the service increases as more users join,” Kaur was quoted by media reports.
According to the CCI chief, single platform business models often end up dominating many digital markets because of their wide range of offerings. This raises concerns around platform neutrality especially when they compete with businesses using their infrastructure.
At a time when algorithms are used for a host of functions such as user experience, pricing, product placement, discoverability and others, the opacity of algorithms is a major roadblock in assessing its implications especially when it comes to competition.
To address these issues, Kaur stressed the need for new analytical tools and the development of a novel regulatory framework that keeps pace with technological advancements.
