Abstract
Digital markets have transformed traditional business transactions into global industries. Through digital markets, businesses and consumers have benefited from lower transaction costs, automation of processes, global reach and increased competition in numerous sectors. However, the market also raises competition concerns around market power, market concentration, weak and anti-competitive conduct by digital platforms. These concerns have called into question existing competition enforcement in the market and its suitability to address anti-competitive conduct in digital markets.
This dissertation identifies how traditional competition tools and methods are not readily applicable in digital markets focusing on dominance and the abuse of dominance. Drawing from selected cases decided by the European Competition Commission (Commission), this study evaluates what tools and methods are being used to establish and assess the dominance of dominant digital platforms and whether such tools and methods are effective in capturing dominance and preventing the abuse of such dominance in the market.
In answering the research questions, the study employs a case study method through a qualitative research approach. The study reviews academic literature to understand how market power arises in digital markets and how significant features within the market such as network effects affect the suitability of traditional tools and methods. The study then analyses five decided cases from the European Competition Commission (the Commission), that focus on abuse of dominance in digital markets to understand which tools and methods are being implemented by the Commission and how they are being tailored to meet the limitations identified in traditional tools and methods. The key findings of the study indicate that the Commission continues to use traditional indicators to establish and assess dominance however, the methods used to assess these indicators have been augmented to cater to the unique characteristics of digital markets.
The key findings of the study indicate that the Commission continues to use traditional indicators to establish and assess dominance however, the methods used to assess these indicators have been augmented to cater to the unique characteristics of digital markets.
This study impacts on competition enforcement in digital markets. The rise of dominant digital platforms and the increased investigations into anti-trust behaviour against dominant digital platforms raises concerns that current competition enforcement is failing to address and prevent anti-competitive behaviour in digital markets. This dissertation argues that the tools and methods used by the Commission are adequate in establishing and assessing dominance in digital markets, however, there is still room for improvement and refinement.