The Effects Of Digital Marketplaces On Antitrust Enforcement: A Comparative Analysis Of The Tech Giants
- IJLLR Journal
- May 8
- 2 min read
Manya Sethi, UPES
Shivam Chopra, UPES
INTRODUCTION
A major change in the economy is providing digitally tailored goods and services at the snap of a finger. In recent decades, advanced transformation has resulted in revolutionary business frameworks emerging within the digital context.
Thanks to the integration of Information Communication Technology (ICT) and the fast-paced growth of digital enterprises, new, distinct digital markets are emerging. These markets contain millions of users and businesses that are operated under this vast computerized identity. Users and businesses use and operate under a digital identity, and they are available in almost all sectors of the economy, ranging from health care services, education, to finance and transport, both on a national and an international scale.
There's an assortment of platforms that circulate services in an economy. These platforms possess features that make navigation smooth within the platform. This brings us to platforms like Google, which distribute various services to users and businesses with ease of access. In contrast to ordinary markets, the feature of strong economies of scale, having data capacity, learning procedures, and synergy of platforms shifts the market condition. This results in a significant growth within a short time span.
Digital markets typically operate on a “winner-takes-all” basis, where one firm is able to rapidly outcompete its rivals1. This is in contrast to traditional markets, which are self-regulated by diminishing returns, encouraging more balanced competition and greater contestability in the market. Due to the reinforcing advantages that exist in digital ecosystems, firms that are successful in one area can easily extend their reach into adjacent markets. This trend not only reduces the chances of market entry for new players, but also tends to foster an environment more permissive of anti-competitive actions.
