Big Data Dominance as a Market Entry Barrier in Digital Marketplace: A Legal Analysis under Indonesian Competition Law
DOI:
https://doi.org/10.33751/jhss.v10i2.160Keywords:
Big Data; Competition Law; Barriers to Entry; Digital Marketplace; Dominant Position; Essential FacilitiesAbstract
The rapid expansion of the digital economy has elevated data to a strategic asset that determines competitive advantage within e commerce ecosystems. The massive accumulation of Big Data by incumbent marketplace platforms potentially creates significant barriers to entry for new market players, thereby undermining competitive market structures. This study aims to (1) analyze the legal qualification of Big Data control by incumbent platforms as a barrier to entry under the Essential Facilities Doctrine, and (2) evaluate the adequacy of Indonesian competition law, particularly Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, in addressing digital data based dominant position abuse. Employing a normative legal research method with statute and conceptual approaches, this study examines relevant legislation and applies Network Effects Theory, Lock in Effect Theory, and the Essential Facilities Doctrine as analytical frameworks. The findings reveal that Big Data constitutes a barrier to entry by generating information asymmetry, network effects, and consumer lock in that new competitors cannot easily replicate. The existing legal framework exhibits critical gaps, as the definition of dominant position under Law No. 5 of 1999 remains oriented toward financial turnover and physical assets, leaving digital market power unmeasured. This study recommends amending Law No. 5 of 1999 to incorporate data volume and algorithmic capacity as indicators of dominant position, strengthening the supervisory authority of KPPU (Business Competition Supervisory Commission) through algorithmic audit powers, and integrating data portability rights within the Personal Data Protection Law (UU PDP) as a structural remedy to reduce digital market entry barriers.
Keywords: Big Data; Competition Law; Barriers to Entry; Digital Marketplace; Dominant Position; Essential Facilities
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