Many digital markets exhibit certain characteristics, such as low variable costs, high fixed costs and strong network effects, that result in high market shares for a small number of firms. In some cases, these lead to “competition for the market” dynamics, in which a single firm captures the vast majority of sales. Firms in these concentrated markets may possess market power, the ability to unilaterally and profitably raise prices or reduce quality beyond the level that would prevail under competition. There is an ongoing debate about whether competition policy is adequately making use of this tool in digital markets today. However, authorities face numerous challenges when bringing abuse of dominance cases in digital markets:
In December 2020, the OECD Global Forum on Competition discussed the main types of abuse of dominance concerns that can emerge in digital markets, what makes these markets unique, and how have competition authorities around the world tackled these challenges. This page contains all related materials for the discussion. SEE ALSO |
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Related links
OECD Handbook on Competition Policy in the Digital Age Market Power in the Digital Economy and Competition Policy, 2022 Consumer data rights and competition, OECD Policy Roundtables 2020 OECD-AGCM Workshop on Abuse of Dominance in Digital Markets, OECD Workshop 2019 Implications of E-commerce for competition policy, OECD Policy Roundtables 2018 Rethinking the use of traditional antitrust enforcement tools in multi-sided markets, OECD Policy Roundtables 2017 Competition issues in aftermarkets, OECD Policy Roundtables 2017 Competition and sanctions in antitrust cases, OECD Global Forum on Competition 2016 Abuse of dominance and monopolisation, OECD Policy Roundtables, 1996 |
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