Competition and regulatory policies interwined: Towards a comprehensive oversight of digital platforms
The digital economy provides a good dose of efficiency and it brings about more benefits than costs. However, nothing guarantees that there will be no further costs or that these benefits will remain over time. A competition deficit in any sector, even more so in the digital economy, requires strong public policy measures and the development of an ecosystem characterized by reasonable contestability. Negative externalities— including privacy issues, consumer rights and misuse of information, among others—should also be controlled through public action. This article first explains how these business models behave differently, as opposed to traditional industries, and considers recent developments in the European and American jurisdictions. It then identifies the challenges ahead and possible solutions from the perspective of both regulatory and competition policies, as complementary measures, while highlighting the balance that must prevail between embracing investments and innovation, and protecting the public interest.
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