Independent Research and Policy Advocacy

A Primer on Competition in the Digital Economy

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Disruptive innovations (mainly through digitalisation) are resulting in a change in the structure of markets and their functioning, emergence of new business models as well as new products and processes (Organisation for Economic Co-operation and Development, 2017). These innovations have been delivering significant benefits to consumers but have also given rise to a spate of public policy concerns ranging from safety and privacy to competition. Especially with respect to competition, these innovations have surfaced challenges such as an increase in the level of concentration in certain markets, a contraction in the entry of new players, an escalation of mark-ups charged by firms well above their costs, and the risks associated with access to large amounts of personal data (Organisation for Economic Co-operation and Development, 2019).

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