Competition authorities around the globe are taking steps to develop institutional capability, and call for new legal powers to tackle the evolving issues in digital markets. The CMA, in cooperation with other regulators, has published and updated a Compendium of Approaches to Digital Markets summarising these developments.
We have already written about the adoption of the Digital Markets Act in the EU and the UK’s proposals to strengthen its competition regime, but there are also other global initiatives. The Compendium identifies two key challenges faced by all regulators. The first is the market power of certain tech companies, aided by network effects, multi-sided markets, and unique access to data. Second, is the insufficiency of existing regulatory powers and methodologies.
The Compendium singles out digital advertising, algorithmic data processing, marketplaces, app stores, and so-called ‘killer acquisitions’ as key priorities. In response, global regulators are:
(i) establishing specialist units with the requisite skills and resources to focus on digital markets, and
(ii) developing new legislative frameworks to address the challenges.
We summarise the key developments in each jurisdiction below: