The role of competition and anti-trust laws in the digital economy

By Robert Bond

Robert Bond (robert.bond@bristows.com) is Partner & Notary Public at Bristows LLP in London, UK.

As the competition and also the data protection regulators increase their attention on social media giants, this article will discuss the European Commission report on the need to address anti-competitive behavior in the digital economy.

The report focuses on three characteristics of the digital economy: extreme returns to scale, network externalities, and the role of data. These characteristics result in strong economies of scope favoring the development of ecosystems where incumbents have a strong advantage and are hard to dislodge.

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