Competition Law and Digital Ecosystems: Learning To Walk Before We Run

Abstract

The paper analyzes the challenges faced by competition authorities with respect to the digital sector. Borrowing insights from the business policy literature and from the economic literature, the paper first analyzes the specificities of digital firms (multi-sided platforms and ecosystems) with respect to their development and competitive strategies. Building on this foundation the paper explores some of the challenges of applying traditional competition analysis to competition in the business sector. We then discuss a number of issues relevant to competition law enforcement in the digital sector starting with the role of data, competition within ecosystems and between ecosystems, consumer biases, and the role of gatekeepers. We conclude with a research agenda for economists and competition authorities.