A New Antitrust Paradigm In View Of The Digital Economy

By: Xavier Puig Soler (Medium)

I’ve had the opportunity to watch a debate held by the Competition Policy International on antitrust and the digital economy where knowledgeable people took part.

It provided me with a clear picture on the most relevant points that are currently under “hot” discussion:

1.- Paradigm change: The need for a quick intervention

There was no substantial disagreement on the need for a quicker intervention in the market by competition authorities. I believe all participants in the discussion are well aware of the possibility that digital markets may “tip” in favor of one specific undertaken and that it is understandable that antitrust bodies should intervene to make sure that such tipping only occurs because of its own merits.

The Catalan Competition Authority just submitted a feedback on the consultation regarding a “new complementary tool to strengthen competition enforcement” issued by the European Commission pointing out that in fact the discipline requires not just a new tool but a paradigm change in the sense that competition authorities should intervene to guarantee the markets well functioning (not to prove a theory of harm to consumers/users).

2.- When and how to intervene

While the need of a quick intervention is assumed, there is quite strong disagreement as to when and how to intervene.

2.1. When to intervene

The basis for the intervention is mainly associated with barriers to entry in terms of data (even though there could be others such as “ avoiding self-preferential behaviors” by gatekeepers).

However, both representatives from Facebook and Google considered that this basis should be revisited since (i) data accumulation is not a good prediction in terms of market success — and so its relevance is dubious — and (ii) data is “only” an ingredient but to have a good meal a good recipe is also key…

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