Competition in the digital market: the importance of Personal Data

By Caterina Carvalho



Society modernization gave rise to the digital transformation of companies. The pandemic accelerated it. A new market is emerging and, with it, new competition dynamics.

By removing manual processes, adding automated tasks (such as chatbots, targeted advertising, etc.) and improving workflows (with artificial intelligence software), companies seek to add value to their products and services and to stand out in the market. The adoption of technological measures can represent a competitive advantage in the new digital market, with more productivity, less cost, and better customer experience.


But that is not all. To stand out from the competition, companies are increasingly using the market knowledge that data processing brings. An analysis carried out by CADE's Journal of Defense of Competition found that the peculiarity of the digital market dynamics is the change in consumers' habits and the technological strategies which companies apply to make the digital world new and attractive.


According to the journal, the dynamics of the digital market can be summed up in 4 points, the main one being: data are the assets with the greatest competitive advantage.

Because data processing is much faster today than it was 2 years ago (due to the ease of its gathering and storage, thanks to better internet features), it can be said that data custody today is the greatest competitive potential of a company.


The analysis and organization of the collected data, therefore, generate an intangible which constitutes companies' intellectual property (developed from Big Data or Business Intelligence) and enable the offer of a more improved and personalized service or product for each client, because it identifies each one's purchase profile.


In addition, after organizing the data, companies have the opportunity to supply them to business partners who then disclose advertisements targeted at the profiles received. Because the commercial partners pay the data collecting companies, the