Big Data and Corporate Law: Analyzing the Due Diligence Implications
Data economy advances has complimented data-driven business models and corporate competitiveness, whereas, business combinations thriving on business and customer data, proprietary rights on data ownership, have promoted economies of scale. However, essential data when cannot be stored and analysed through conventional software and databases, garners the nomenclature ‘big data’, indicating necessity for advanced technologies for analysis. Due diligence by law firms precedes corporate transactions wherein background checks are performed to safeguard against adverse legal implications ex post. Corporate transactional work has conventionally necessitated data analysis through paper trail and limited technology, complex volumes of business data like client and vendor lists, revenue projections, sales, intellectual property, among others, unable to be stored through databases or software can raise issues like access through technology like artificial intelligence, information asymmetry and analysis from due diligence perspective. The present paper attempts to introspect big data applications by analysing linkages with corporate transactions and data economy. The second part explores concept and kinds of due diligence and facets of integrating big data. The third part introspects issues like lack of standardization, technology-law conundrum and ethical concerns. Consequently, the fourth part provides suitable suggestions.