What’s market power got to do with it?: The relationship between digital competition policy developments and market power

Competition policy has been undergoing a rapid evolution with respect to digital markets, including new legislative frameworks. This article explores whether market power has retained a central role during this evolution. It considers the nature of market power in digital markets, and the relationship between market power and new regulatory designations and prohibitions. It then looks ahead to some challenges on the horizon.

1. Competition policy has been undergoing a rapid evolution with respect to digital markets: [1] new regulatory frameworks have been advancing through legislative processes, new investigations are being announced, and new digital-focused units are being established within competition authorities or across national regulators. [2] It is worth asking whether the fundamental concepts of competition law and policy are being retained in this evolution. One such concept is a focus on market power. 2. In modern antitrust policy, market power is a key economic foundation for much of the analysis conducted by competition authorities. It is what empowers, and potentially incentivises, firms to engage in exclusionary conduct. It also underpins merger assessment, which ultimately seeks to avoid

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  • OECD - Competition Division (Paris)

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James Mancini, What’s market power got to do with it?: The relationship between digital competition policy developments and market power, September 2022, Concurrences N° 3-2022, Art. N° 107277, pp.22-26

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