Competition Policy Reform in Europe and Germany – Institutional Change in the Light of Digitization

Ilmenau Economics Discussion Papers, Vol. 24, No. 117

51 Pages Posted: 26 Nov 2018

See all articles by Oliver Budzinski

Oliver Budzinski

Ilmenau University of Technology

Annika Stöhr

Ilmenau University of Technology

Date Written: November 7, 2018

Abstract

The ubiquitous process of digitization changes economic competition on markets in several ways and leads to the emergence of new business models. The increasing roles of digital platforms as well as data-driven markets represent two relevant examples. These developments challenge competition policy, which must consider the special economic characteristics of digital goods and markets. In Germany, national competition law was amended in 2017 in order to accommodate for digitization-driven changes in the economy and plans for further changes are already discussed. We review this institutional change from an economics perspective and argue that most of the reform’s elements point into the right direction. However, some upcoming challenges may have been over-looked so far. Furthermore, we discuss whether European competition policy should fol-low the paragon of the German reform and amend its institutional framework accordingly. We find scope for reform particularly regarding data-driven markets, whereas platform economics appear to be already well-established.

Keywords: competition policy, antitrust, industrial economics, digitization, media economics, institu-tional economics, industrial organization, big data, algorithms, platform economics, two-sided markets, personalized data, privacy, internet economics, consumer protection

JEL Classification: L40, K21, L86, L82, L81, L10, L15, D80

Suggested Citation

Budzinski, Oliver and Stöhr, Annika, Competition Policy Reform in Europe and Germany – Institutional Change in the Light of Digitization (November 7, 2018). Ilmenau Economics Discussion Papers, Vol. 24, No. 117 . Available at SSRN: https://ssrn.com/abstract=3280896 or http://dx.doi.org/10.2139/ssrn.3280896

Oliver Budzinski (Contact Author)

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

HOME PAGE: http://www.tu-ilmenau.de/wth

Annika Stöhr

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
60
Abstract Views
196
rank
350,706
PlumX Metrics