Digital market and its adequacy of merger assessment in Indonesian business competition law

IF 1.3 Q1 LAW
Sukarmi Sukarmi, Kukuh Tejomurti, Udin Silalahi
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引用次数: 0

Abstract

Purpose

This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In addition, the implications for the development of theories of harm are investigated to explore the necessity of a relevant market definition in assessing infringement and evaluating the adequacy of Indonesian competition law.

Design/methodology/approach

This study is a legal analysis that uses statutory approaches, cases, comparative law and the development of theories of harm in digital mergers. The case approach is conducted by analyzing three cases decided by the Indonesia Business Competition Supervisory Commission. This approach provides insight into the response of Komisi Pengawas Persaingan Usaha concerning the merger and acquisition cases in the digital era as well as the provision of different analyses in conventional markets. However, competition can be potentially damaged in digital markets and a comparative law approach is taken by analyzing digital merger cases decided by authorities in other countries.

Findings

Results reveal that the digital market has created a “relevant market” that is challenging and blurred due to multi-sided network effects and consumer data usage characteristics. Platform-based enterprises’ prices fluctuate due to the digital market’s network effect and consumer data statistics. Smartphone prices depend on the number of apps and consumer data. Neoclassical theory focusing on product markets and location applied in Indonesia must be revised to establish a relevant digital economy market. To evaluate digital mergers, new harm theories are needed. The merger should also protect consumer data. Law Number 27 of 2022 on Personal Data Protection and Government Regulation on the Implementation of Electronic Systems and Transactions protects online consumers, a basic step in due diligence for digital mergers. The Indonesian Government should promptly strengthen the notion of “relevant markets” in the digital economy, which could lead to fair business competition violations like big data control. Notify partners or digital merger participants of the accessibility of sensitive data like transaction history and user location.

Originality/value

The development of digital market characteristics has implications for developing theories of harm in digital markets. Indonesian competition law needs to develop such theories of harm to analyze the potential for anticompetitive digital mergers in the digital economy era.

印度尼西亚商业竞争法中的数字市场及其兼并评估的充分性
目的 本研究旨在分析数字市场特征的发展,尤其关注平台的战略选择如何未在定价中得到充分反映。此外,还研究了损害理论发展的影响,以探讨在评估侵权行为和评价印尼竞争法的适当性时,相关市场定义的必要性。本研究是一项法律分析,使用了法定方法、案例、比较法和数字兼并中损害理论的发展。案例分析法通过分析印度尼西亚商业竞争监督委员会裁决的三个案例进行。这种方法有助于深入了解印尼商业竞争监督委员会(Komisi Pengawas Persaingan Usaha)对数字时代并购案的回应,以及对传统市场的不同分析。研究结果显示,由于多方网络效应和消费者数据使用特点,数字市场创造了一个具有挑战性和模糊性的 "相关市场"。平台型企业的价格因数字市场的网络效应和消费者数据统计而波动。智能手机的价格取决于应用程序的数量和消费者数据。印尼应用的新古典理论侧重于产品市场和地点,必须加以修正,以建立相关的数字经济市场。为了评估数字兼并,需要新的损害理论。合并还应保护消费者数据。2022 年第 27 号《个人数据保护法》和《关于实施电子系统和交易的政府条例》保护在线消费者,这是数字兼并尽职调查的基本步骤。印尼政府应及时强化数字经济中 "相关市场 "的概念,这可能会导致违反公平商业竞争的行为,如大数据控制。通知合作伙伴或数字兼并参与者交易历史和用户位置等敏感数据的可获取性。原创性/价值数字市场特征的发展对数字市场损害理论的发展具有影响。印尼竞争法需要发展此类损害理论,以分析数字经济时代反竞争数字兼并的可能性。
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来源期刊
CiteScore
3.90
自引率
6.70%
发文量
13
期刊介绍: The International Journal of Law and Management is a leading journal addressing all aspects of regulation and law as they impact on organisational development, operations and leadership. Organisations and their leaders operate in an increasingly complex world of emerging regulation across national and international boundaries. The International Journal of Law and Management seeks to acknowledge the dynamics of that environment and provide a platform for articles and contributions to stimulate scholarly debate in the development of law and practice. The International Journal of Law and Management seeks to present the latest research on policy, practice and theoretical perspectives and their impact on the development and leadership of organisations. Contributions of a multi-disciplinary nature are welcome. Coverage includes, but is not limited to: -Employment and industrial law- Corporate governance and social responsibility- Intellectual property- Corporate law and finance- Insolvency- Commercial law and consumer protection- Environmental law- Taxation- Competition law- Regulatory theory
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