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Competition and Regulatory Challenges in Digital Markets: How to Tackle the Issue of Self-Preferencing?

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  • Frédéric Marty

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal)

Abstract

This contribution deals with the application of competition rules in the digital sector and, in particular, the distortions that can result from self-preferencing strategies. In the context of the European Commission's Digital Markets Act project and the UK's plans to regulate the major digital ecosystems, the aim is to examine the relative effectiveness of the current effects-based approach stemming from competition law enforcement, the use of per-se rules, the implementation of specific regulation or the imposition of structural remedies to address such risks. It is a question of insisting on the objectives pursued (maximisation of consumer welfare, dynamic efficiency, contestability of market positions and fairness) and on the conditions for the implementation of hybrid approaches combining the logic of sectoral regulation and procedures rooted in the enforcement of competition rules.

Suggested Citation

  • Frédéric Marty, 2021. "Competition and Regulatory Challenges in Digital Markets: How to Tackle the Issue of Self-Preferencing?," Working Papers halshs-03227392, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03227392
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    References listed on IDEAS

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    1. Massimiliano Vatiero, 2015. "Dominant market position and ordoliberalism," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(4), pages 291-306, December.
    2. CABRAL Luis & HAUCAP Justus & PARKER Geoffrey & PETROPOULOS Georgios & VALLETTI Tommaso & VAN ALSTYNE Marshall, 2021. "The EU Digital Markets Act," JRC Research Reports JRC122910, Joint Research Centre.
    3. Frédéric Marty, 2013. "As-Efficient Competitor Test in Exclusionary Prices Strategies: Does Post-Danmark Really Pave the Way towards a More Economic Approach?," GREDEG Working Papers 2013-26, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Mar 2014.
    4. Manne, Geoffrey & Wright, Joshua, 2011. "Innovation and the Limits of Antitrust," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    5. Mann, Jeoffrey & Wright, Joshua, 2010. "Innovation and the Limits of antitrust," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 99-123.
    6. Patrice Bougette & Frédéric Marty, 2020. "Information Exchange among Firms: The Coherence of Justice Brandeis' Regulated Competition Approach," GREDEG Working Papers 2020-56, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Feb 2021.
    7. Frédéric Marty, 2019. "Plateformes de commerce en ligne et abus de position dominante : réflexions sur les possibilités d’abus d’exploitation et de dépendance économique," Post-Print halshs-02277917, HAL.
    8. Patrice Bougette & Oliver Budzinski & Frédéric Marty, 2019. "Exploitative Abuse and Abuse of Economic Dependence: What Can We Learn From an Industrial Organization Approach?," Revue d'économie politique, Dalloz, vol. 129(2), pages 261-286.
    9. Marc Bourreau & Germain Gaudin, 2022. "Streaming platform and strategic recommendation bias," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(1), pages 25-47, February.
    10. Dennis W. Carlton & Michael Waldman, 2014. "Robert Bork's Contributions to Antitrust Perspectives on Tying Behavior," Journal of Law and Economics, University of Chicago Press, vol. 57(S3), pages 121-144.
    11. Daniele Condorelli & Jorge Padilla, 2020. "Harnessing Platform Envelopment in the Digital World," Journal of Competition Law and Economics, Oxford University Press, vol. 16(2), pages 143-187.
    12. Frédéric Marty & Mehdi Mezaguer, 2018. "Negociated Procedures in EU Competion Law," Post-Print halshs-01896976, HAL.
    13. Nathalie de Marcellis-Warin & Frédéric Marty & Eva Thelisson & Thierry Warin, 2020. "Artificial Intelligence and Market Manipulations: Ex-ante Evaluation in the Regulator's Arsenal," Working Papers halshs-03041690, HAL.
    14. Frédéric Marty & Julien Pillot, 2018. "With uncertain damage theory come unpredictable effects of remedies. “Libres propos”on the Android case," Post-Print halshs-01959502, HAL.
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    Citations

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    Cited by:

    1. Frédéric Marty, 2021. "The concentration of digital markets: How to preserve the conditions for effective and undistorted competition?," CIRANO Working Papers 2021s-27, CIRANO.
    2. Budzinski, Oliver, 2021. "Europäische Regulierung digitaler Dienste: Eine kritische Würdigung der Entwürfe DMA & DSA aus medienökonomischer Perspektive," Ilmenau Economics Discussion Papers 158, Ilmenau University of Technology, Institute of Economics.
    3. Budzinski, Oliver & Feddersen, Arne, 2022. "Should organizing premier-level European football be a monopoly? And who should run it? - An economists' perspective," Ilmenau Economics Discussion Papers 166, Ilmenau University of Technology, Institute of Economics.

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    More about this item

    Keywords

    digital ecosystems; self-preferencing; exclusionary abuses; exploitative abuses; remedies;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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