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The concentration of digital markets: How to preserve the conditions for effective and undistorted competition?

Author

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  • Frédéric Marty

    (CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

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.

Suggested Citation

  • Frédéric Marty, 2021. "The concentration of digital markets: How to preserve the conditions for effective and undistorted competition?," SciencePo Working papers Main halshs-03321697, HAL.
    • Handle: RePEc:hal:spmain:halshs-03321697
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    References listed on IDEAS

    as
    1. Frédéric Marty, 2021. "Competition and Regulatory Challenges in Digital Markets: How to Tackle the Issue of Self-Preferencing?," Working Papers halshs-03227392, HAL.
    2. Frédéric Marty, 2019. "Plateformes de commerce en ligne et abus de position dominante : réflexions sur les possibilités d’abus d’exploitation et de dépendance économique," Post-Print halshs-02277917, HAL.
    3. Patrice Bougette & Oliver Budzinski & Frédéric Marty, 2019. "Exploitative Abuse and Abuse of Economic Dependence: What Can We Learn From an Industrial Organization Approach?," Revue d'économie politique, Dalloz, vol. 129(2), pages 261-286.
    4. Frédéric Marty & Julien Pillot, 2021. "Cooperation, dependence, and eviction: how platform-to-business coopetition relationships should be addressed in mobile telephony ecosystems," Post-Print halshs-03202013, HAL.
    5. Frédéric Marty, 2020. "Accès aux données, coopétition intra-plateforme et concurrence inter-plateformes numériques," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 221-246.
    6. Frédéric Marty, 2021. "Competition and Regulation Challenges in Digital Markets: How to Tackle the Issue of Self-Preferencing?," Post-Print halshs-03427287, HAL.
    7. CABRAL Luis & HAUCAP Justus & PARKER Geoffrey & PETROPOULOS Georgios & VALLETTI Tommaso & VAN ALSTYNE Marshall, 2021. "The EU Digital Markets Act," JRC Research Reports JRC122910, Joint Research Centre.
    8. Baumol, William J & Ordover, Janusz A, 1985. "Use of Antitrust to Subvert Competition," Journal of Law and Economics, University of Chicago Press, vol. 28(2), pages 247-265, May.
    9. Frédéric Marty & Thierry Warin, 2020. "Keystone Players and Complementors: An Innovation Perspective," CIRANO Working Papers 2020s-61, CIRANO.
    10. Woodcock, Ramsi, 2020. "The Contrasting Approaches to Power of the Modern State and the Antitrust Laws: Lessons for Platform Regulation," LawArXiv 73fnh, Center for Open Science.
    11. Thierry Warin & Nathalie de Marcellis-Warin & Antoine Troadec & William Sanger & Bertrand Nembot, 2014. "Un état des lieux sur les données massives," CIRANO Burgundy Reports 2014rb-01, CIRANO.
    12. Thomas Davenport & Abhijit Guha & Dhruv Grewal & Timna Bressgott, 2020. "How artificial intelligence will change the future of marketing," Journal of the Academy of Marketing Science, Springer, vol. 48(1), pages 24-42, January.
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    More about this item

    Keywords

    Contestability; Fairness; loyalty; Big Tech; concentration; exclusionary practices;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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