The Concentration of Digital Markets: How To Preserve the Conditions for Effective and Undistorted Competition?

33 Pages Posted: 16 Mar 2022

See all articles by Frédéric M. Marty

Frédéric M. Marty

Research Group on Law, Economics and Management (UMR CNRS 7321 GREDEG) / Université Nice Sophia Antipolis; OFCE; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Date Written: August 17, 2021

Abstract

The policy initiatives announced on both sides of the Atlantic to complement competition rules focus on two key dimensions: the contestability of markets on the one hand and fairness in their functioning on the other. The underlying idea is that the market positions of Big Tech would be inexpugnable - insofar as high barriers to entry protect them from self-regulating competition and insofar as they would have regulatory power over their respective ecosystems. Competition for the market would no longer be free, and competition in the market would be distorted. Our purpose in this working paper is to discuss these two dimensions. Are digital markets still contestable, and is the competition in them still competition on the merits? Finally, we discuss the remedies proposed to address these two alleged phenomena.

Keywords: contestability, fairness, loyalty, Big Tech, concentration, exclusionary abuses

JEL Classification: K21, L41

Suggested Citation

Marty, Frédéric M., The Concentration of Digital Markets: How To Preserve the Conditions for Effective and Undistorted Competition? (August 17, 2021). Available at SSRN: https://ssrn.com/abstract=4026434 or http://dx.doi.org/10.2139/ssrn.4026434

Frédéric M. Marty (Contact Author)

Research Group on Law, Economics and Management (UMR CNRS 7321 GREDEG) / Université Nice Sophia Antipolis ( email )

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