The impact of big data on innovation and dynamic efficiency in the competition process in digital markets

Articles in Press

Document Type : Original Article

Authors

1 Assistant Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran

2 private law- faculty of Law-Beheshti university of Tehran

10.48308/jlr.2025.239462.2877

Abstract

Innovation is one of the most significant factors influencing the dimensions of competition in digital markets, playing a more prominent role compared to traditional markets. Big data, as a key component of competition, has, on the one hand, enhanced efficiency in digital markets, while on the other hand, it has occasionally pushed these markets toward reduced competition, posing challenges for new and innovative firms. This article, adopting a descriptive-analytical approach and reflecting on the principles and frameworks of leading competition law systems, examines the impact of big data usage on innovation within the digital competition landscape. It further explores strategies for preserving innovation in big data-driven market competition, along with their advantages and disadvantages. The study demonstrates that direct intervention to safeguard innovation in the market is not advisable. Instead, competition authorities can foster innovation in digital markets by maintaining a competitive environment and countering restrictive behaviors related to big data, guided by modern perspectives such as the "innovation cost" theory. Although Iran's legal framework is in the early stages of addressing competitive issues surrounding big data and innovation, the growing use of artificial intelligence and big data capabilities necessitates measures tailored to Iran’s innovative and technological market conditions. These measures should facilitate the utilization of big data—typically controlled by large platforms—while ensuring that smaller potential and active competitors, who rely on innovation to secure a competitive position, are not denied opportunities to enter and grow in the market.

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Legal Research Quarterly

Articles in Press, Accepted Manuscript
Available Online from 23 November 2025

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History

  • Receive Date: 12 April 2025
  • Revise Date: 14 October 2025
  • Accept Date: 23 November 2025

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