The digital space is becoming increasingly important in our daily lives. At the same time, a few powerful companies, so-called digital gatekeepers, dominate this key market, while new players struggle to gain a foothold. To strengthen competition, legislators are introducing regulations. However, in the fast-paced digital market, such regulations can quickly lead to unintended consequences.

To prevent unintended side effects, such as price increases for users, Nora von Ingersleben-Seip (HfP and University of Amsterdam) and Zlatina Georgieva (Utrecht University, formerly affiliated with the Chair for International Relations at HfP), suggest an enhanced two-step review process under the EU competition law framework. Their approach is based on a proposal for enforcers to make better use of what are known as counterfactual scenarios—thought experiments that explore alternative outcomes, used in history and philosophy since ancient times. Using this technique in the first step, enforcers would analyze what the market would look like if the problematic actions of gatekeepers had not occurred. In the second, they would develop targeted measures (remedies) to mitigate market distortions.

When it comes to data sharing among the major digital players, it is crucial to thoroughly analyze the impacts on the dynamic digital market. “When enacting laws to regulate the digital market, it's not about being ‘too strict’ or ‘too loose’. The real question is: Are we achieving the desired effects – even in the long run and considering the rapid pace of digital innovation?” says Nora von Ingersleben-Seip, author of the study. 

Read the Scientific Article:

https://academic.oup.com/antitrust/advance-article/doi/10.1093/jaenfo/jnae042/7731445?searchresult=1