Competition Policy and the Digital Era: A Perspective into the Dynamics of Digital Economy, Digital Markets and Policy

Abstract

Technological intervention in the business world has completely revamped the way businesses are done. Today we live in a digital economy and do transactions through digital markets. this new era of digitalization of business has opened the doors for newer opportunities for businesses while at the same time benefitting consumers through access to a variety of goods, it raised certain concerns as to safeguarding the interest of the consumers as well as the interest of the other competing firms. While dealing with these concerns is not new to any competition authority, dealing with such concerns in digital markets is certainly a challenge. The world economy has transitioned to a new era of digital economy, we have yet not become accustomed to its possible impacts on us. The traditional markets stand replaced by digital markets which work in complex webs of network effects and data mining. These markets functioning through digital platforms involve multiple players at the same time making analyses of the effect of any unfair business practice extremely difficult for competition authorities. The criteria for determining dominance and its adverse effect on the market have changed making the traditional tools ineffective to curtail any unfair business practice. The integration of technology into our daily lives and the all-pervasive nature of it has made the impact of anti-competitive conduct in Digital Markets a topic of discussion among governments and policymakers. Much research is being conducted by policymakers and various organizations in studying the negative impact of these technological innovations on markets and their way of doing business, as well as consumers and other competing firms. A basic understanding of the functioning of these markets has made it clear that the existing competition regime with its enforcement tools is ineffective in identifying and controlling the anti-competitive business practices in the digital markets. it is suggested by policymakers and lawmakers to either revamp the existing competition enforcement regime or frame a new competition regime that is adaptable to the challenges of technological innovations and use.