Competition Law, Networks, and the Evolving Regulatory Architecture of Digital Markets

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seyedzadeh khanshan Tohid

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Seminar Paper

Paper Information

Seminar: INTERNATIONAL AND NATIONAL CONFERENCE ON MANAGEMENT STUDIES, ACCOUNTING AND LAW
Year:2025 | Issue:15

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Title

Competition Law, Networks, and the Evolving Regulatory Architecture of Digital Markets

Author(s)

seyedzadeh khanshan Tohid | Issue Writer Certificate

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Abstract

Introduction: Recent technological developments have revolutionised the markets and business models. Digital markets and platforms are of particular importance in this regard. As digital markets become more relevant and the economics behind them become more complex, competition law and authorities face new challenges. Network externalities might make markets highly concentrated. Therefore, such markets become less competitive if potential competitors face high barriers to entry due to structural disadvantages, compared to early market entrants. Several characteristics of online markets may allow for business practices that prevent fair competition. (Brühl, V. (2023)) The article aims to show the use of data in the digital age, along with the main characteristics of digital platforms and the problems they pose in the competitive environment. In this regard, Section 2 analyses the power of data after defining data and Big Data. Afterwards, Section 3 describes the main elements of online platforms and the problems associated with them, including multi-sidedness, network effects, economies of scale and scope, multi-homing, switching costs, and lock-in effects. Finally, Section 4 presents some current efforts to regulate digital markets and minimise online platform challenges as well as concerns regarding their success. . .

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