PCC flags data dominance risks, eyes policy reforms

The Philippine Competition Commission (PCC) warned that the growing control of major digital platforms over user data could entrench their dominance and weaken market competition, as the antitrust watchdog moves to integrate data privacy into its competition reviews and pursue potential policy reforms.

“The study highlights how leading players like Facebook and Google could leverage their control over data to entrench their market positions, potentially reducing competition and raising privacy concerns in the Philippines,” the PCC said over the weekend

Reflecting industry practice, the anti-competition watchdog said both platforms impose “take-it-or-leave-it” privacy policies that leave consumers with little bargaining power over how their data are collected and used. 

Facebook consolidates data across the Meta ecosystem, including Instagram and WhatsApp, while Google integrates user information from services such as Gmail, Google Maps, and YouTube.

The PCC said these consolidated datasets enhance ad targeting and content relevance but also create structural advantages that make it difficult for potential competitors to enter or scale, as they cannot readily replicate the same volume and breadth of user data.

An online survey cited in the study showed most consumers tend to overlook the risks associated with data collection, monitoring, and third-party sharing due to limited alternatives and the platforms’ widespread use in daily digital activities.

The commission said the findings underscore the need to align competition policy with data privacy principles such as data portability and interoperability, which can promote competition but also carry risks of misuse or breaches if not properly regulated.

To address these concerns, the PCC said it plans to integrate data privacy considerations into its competition assessments and explore legislative initiatives to ensure existing competition frameworks remain relevant, signaling closer regulatory scrutiny of dominant digital platforms and their data practices.