New technologies or business models can profoundly affect the functioning of existing industries. The most visible examples are internet-based "sharing services" that are disrupting conventional taxi and hotel markets, but there are many others in diverse areas such as finance, retail electricity and automobiles.
These disruptive innovations can deliver important benefits to competition and consumers, in terms of new and better services, and can stimulate innovation and price competition from established providers. However, they can also give rise to legitimate public policy concerns (e.g. safety, privacy) and create demands for regulation. Established providers will often lobby for existing regulations to be applied to new providers to lessen their competitive advantage, sometimes claiming rightly or wrongly that this advantage arises from an ‘unfair’ exclusion from regulatory rules.
But how far should regulation go, what role should competition policy play in these debates, and how might competition authorities participate?
In June 2015, the OECD gathered experts to discuss current challenges arising from disruptive innovations and possible areas for future work. Participants discussed the economic characteristics of industries where such innovations have appeared, the various responses of incumbents and regulators, and the possible ways in which competition authorities could intervene, with a focus on competition advocacy.
JUNE 2015 SESSION DOCUMENTATION
Daniel CRANE Bio
John FINGLETON Bio
Salle YOO Bio
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