The Philippine Competition Commission (PCC) recently issued market study investigating the critical intersection of competition policy and data privacy within the social media and search platform industries. As digital innovations continue to reshape how Filipinos interact and conduct business, the study warns that a handful of dominant “Big Tech” firms, specifically Meta’s Facebook and Google, have established highly concentrated market positions that may stifle competition and compromise user privacy.
Central to the PCC’s findings is the “data-driven business model” employed by these platforms. By offering essential services for free, platforms like Facebook and Google are able to collect and process vast quantities of user data, including personal information, location, and browsing history. This data is then consolidated across entire ecosystems—such as Google’s integration of Gmail, Maps, and YouTube data—to refine targeted advertising and improve search relevance. The study notes that this level of data consolidation creates significant barriers to entry, as potential competitors cannot easily replicate the sheer breadth of data available to incumbents.
A primary concern highlighted in the report is the lack of genuine consumer choice regarding these practices. Digital platforms typically enforce “take-it-or-leave-it” privacy policies, requiring users to accept all terms and conditions as a prerequisite for access. This leaves consumers with virtually no bargaining power. While a PCC consumer survey revealed that a majority of users are “at least slightly concerned or even deeply concerned” about the monitoring of their online activities and third-party data sharing, many feel “locked in” due to the lack of viable alternatives and the indispensable role these platforms play in daily life.
The study also explores the complex interplay of data portability and interoperability. While allowing users to move their data between platforms is generally seen as “pro-competitive,” the PCC cautions that such mechanisms could be exploited by dominant firms to further entrench their power or lead to data security breaches if not properly regulated. Furthermore, the global nature of these platforms presents enforcement challenges, as cross-border data flows are subject to varying privacy laws across different jurisdictions.
To address these emerging threats, the PCC recommends integrating data privacy considerations directly into its competition assessments. Proposed interventions include developing internal guidelines for evaluating privacy-related competitive harm and exploring legislative reforms to update the Philippine Competition Act. Additionally, the study calls for “stronger cooperation” between the PCC and the National Privacy Commission (NPC), as well as increased collaboration with international antitrust authorities to harmonize regulations concerning data mobility and cross-border transfers.