Is competition policy fit for the digital economy? A European perspective
File(s)
Accepted version
Author(s)
Estrin, Saul
Meyer, Klaus E
Kretschmer, Tobias
Type
Journal Article
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 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 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 illustrate this thinking with exemplars from the practice of the EU Commission. Although existing competition policy can provide a basis for addressing 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 interoperability of systems and standards. We consider implications for policymakers. Corporate strategists must also understand how the evolving competition policy framework is impacting competitive dynamics of both platform operator and platform complementing entrepreneurs.
Date Issued
2025-11-01
Date Acceptance
2025-03-01
Citation
Academy of Management Perspectives, 2025, 39 (4), pp.667-686
ISSN
1558-9080
Publisher
Academy of Management
Start Page
667
End Page
686
Journal / Book Title
Academy of Management Perspectives
Volume
39
Issue
4
Copyright Statement
Copyright © 2025 The Author(s). This is the author’s accepted manuscript made available under a CC-BY licence in accordance with Imperial’s Research Publications Open Access policy (www.imperial.ac.uk/oa-policy)
License URL
Publication Status
Published
Date Publish Online
2025-03-31