Abuse of Data-Driven Market Power and Monopsony of Personal Data by Social Commerce Platforms from a Competition Law Perspective

Abstract

This study analyzes the abuse of data-driven market power and the monopsony of personal data by social commerce platforms, examined through the lens of Indonesian competition law. Employing a juridical-normative methodology utilizing both statutory and conceptual approaches the research investigates the implications of data concentration for anti-competitive practices. The findings indicate that the exclusive control of personal data by social commerce platforms creates significant barriers to entry for new market participants, reinforces dominant positions through network effects, and facilitates monopsonistic practices that disadvantage both producers and consumers. The deployment of algorithms and the large-scale collection of data lacking transparency trigger market distortions and discriminatory behaviors that are difficult to address using the conventional instruments of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. Consequently, a reinterpretation of competition law, integrated with personal data protection regulations, is essential to ensure a fair and competitive digital ecosystem.