Competition Law and the Digital Economy in the UK and Beyond

Abstract

In Chapter 14, Liza Lovdahl Gormsen considers the contemporaneous debate on how best to address aspects of the interaction between competition law and the digital economy. She stressed that data is the pinnacle of the digital economy. It has fuelled amazing innovations in all sectors of the economy, but the accumulation of data in the hands of a few global companies may lead to lock-in, bottleneck issues, and leverage. The chapter notes that according to the report Unlocking Digital Competition, which was prepared for the UK Treasury, competition policy will need to be updated to address the novel challenges posed by the digital economy. Some of these updates can happen within current powers, but legal changes are important to ensure that this job can be done effectively. The Competition and Markets Authority’s market study on Online Platforms and Digital Advertising recommends establishing a Digital Markets Unit and ex ante regulation as a possible way forward. Building on the outputs from the Furman Review, the government asked the CMA to lead a Digital Markets Taskforce. In December 2020, the latter published its advice, A New Pro-competition Regime for Digital Markets, where it sets out the role of the Digital Markets Unit and an overview of its proposed regulatory framework for digital firms. This chapter looks at some of the challenges for UK competition policy in digital markets, in particular in relation to data, enforcement, and regulation. It also touches upon some of the potential issues that the UK faces in the digital economy following Brexit.