The Philippine Competition Commission (PCC) has released a market study that examines the intersection of competition policy and data privacy in social media and search platforms.
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. Reflecting industry practices, both platforms enforce “take-it-or-leave-it” privacy policies that leave consumers with little bargaining power over how their data is collected and used.
Facebook consolidates data across the Meta ecosystem, including Instagram and WhatsApp, while Google integrates data from Gmail, Maps, YouTube, and other services. Consolidated data are then utilized to enhance the targeting of advertisements and improve the relevance of content and search results.
These practices make market entry increasingly difficult for potential competitors who cannot readily consolidate the same amount and breadth of user data. An online survey showed that majority of consumers tend to overlook the downside of the data collection practices, monitoring, and third-party data sharing by these platforms due to limited alternatives and their widespread presence in daily digital activities.
The study also highlighted the interplay between competition policy and data privacy concepts such as data portability and interoperability. Data portability pertains to the ability of users to transfer their data easily between platforms, while interoperability refers to the capacity of different systems to work seamlessly together.
While these concepts generally help foster competition, they also raise the risk of data misuse and breach if left unchecked. Cross-border data flows also pose challenges as digital platforms operate across multiple jurisdictions with varying data privacy laws, complicating regulation and enforcement.
To address these challenges, the study makes several recommendations, including integrating data privacy considerations into PCC’s competition assessments and exploring legislative initiatives to make existing competition frameworks consistent and up to date.
This market study is part of the PCC’s continuing efforts to examine key industries, identify emerging competition concerns, and propose evidence‑based interventions. Through these studies, the Commission advances its mandate to promote consumer welfare and ensure fair, dynamic, and inclusive markets in the Philippines.
