Is competition policy fit for the digital economy? A European perspective

Estrin, Saul ORCID: 0000-0002-3447-8593, Meyer, Klaus and Kretschmer, Tobias (2025) Is competition policy fit for the digital economy? A European perspective. Academy of Management Perspectives. ISSN 1558-9080 (In Press)

Text (A Framework for Competition Policy full) - Accepted Version Pending embargo until 1 January 2100. Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (861kB)

Abstract

Competition policy establishes the institutional framework for competitive dynamics in market economies. Recently, the relevance and impact of traditional competition policy has been challenged by the rise of the digital economy, where we see a small number of very large platform firms, frequent takeovers and mergers, and the potential for using customer data to join and dominate previously separate markets. We provide a framework to explain the basis for contemporary competition policy and explore the implications for company strategy within and beyond the digital sector. Some of the most radical thinking about how competition policy might address the challenge of the digital economy originates from Europe, itself a major market for technology firms. We present this thinking illustrated with brief exemplars from the practice of the EU Commission. Although existing competition policy can provide a basis for addressing some monopolistic abuses in digital markets, practices are shifting to address novel sources of market power, including the governance architecture of digital platform firms and their ecosystems, the transferability of personal data, and the inter-operability of systems and standards. We consider the implications for policymakers going forward. Corporate strategists also need to understand how the evolving competition policy framework is impacting the future of competitive dynamics of both platform operator and platform complementing entrepreneurs.

Item Type:	Article
Additional Information:	© 2025
Divisions:	Management Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HB Economic Theory
Date Deposited:	24 Jan 2025 14:51
Last Modified:	24 Jan 2025 15:03
URI:	http://eprints.lse.ac.uk/id/eprint/127060

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