Abuse of dominant position on digital market : is the European Commission going back to the old paradigm?

Abstract

PURPOSE: The study concerns abuse of a dominant position on digital markets on the example of practices used by Google. The main purpose of the article is to draw attention to the lack of appropriate tools for assessing abuse of a dominant position in such markets.

METHODOLOGY: The article was prepared based on the method of analyzing documents (mainly the European Commission and FTC) and literature on competition low and policy. The article also uses legal acts and the guidelines of the European Commission.

FINDINGS: The study adopts the hypothesis that the European Commission is limited to instruments created for the needs of mature markets, whose attribute is static competition and not innovation. Such tools are not appropriate to assess the behavior of entrepreneurs on digital markets and should be used in a selective and flexible manner. The Commission's rigid approach to the application of existing mechanisms may harm innovation and expansion of companies operating under dynamic competition.

PRACTICAL IMPLICATIONS: The article critically assesses the approach of the European Commission and indicates the factors that should be considered in assessing the abuse of a dominant position by entrepreneurs on digital markets.

ORIGINALITY/VALUE: As a result, it was pointed out that abuse of a dominant position on digital markets is a relatively new practice and their antitrust assessment mechanisms have not yet been developed. This study provides a voice in the discussion on how antitrust authorities approach towards the assessment of abuse of dominance on digital markets and their sanctioning. At the same time, it draws attention to the need to develop appropriate tools for assessing a dominant position and then its abuse in markets with dynamic competition and whose main attribute is innovation.