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October 28, 2021updated 27 Oct 2021 3:24pm

Antitrust: Regulatory Trends

By GlobalData Thematic Research

Regulators are evaluating data interoperability as a possible antitrust intervention mechanism instead of pursuing a company’s breakup. Demanding companies to reveal their data may be a suitable tool that regulators can use to ensure that new entrants compete for business on a level playing field.

Listed below are the key regulatory trends impacting the antitrust theme, as identified by GlobalData.

Ex-ante regulation

Ex-ante regulation, as opposed to ex-post antitrust litigation, is emerging as an effective tool to tackle digital monopolies. It allows regulators to address structural competition problems without finding an infringement of antitrust rules.

The Encumbrance Certificate’s (EC) proposed digital market act (DMA) includes important innovations in this respect. The commission only applies the DMA to platforms that have a significant number of users across the European Union (EU) and generate substantial revenues. The DMA’s rules render certain practices illegal without requiring a lengthy investigation. The ideas are in line with the UK Government-commissioned Furman Report, which recommended a code of competitive conduct applicable “only to particularly powerful companies.”

The comparative market analysis (CMA) report into online platforms and digital advertising recommended that new regulations only cover platforms funded by digital advertising and with “strategic market status.”

This is an edited extract from the Antitrust in Tech, Media, and Telecom (TMT) Industry – Thematic Research report produced by GlobalData Thematic Research.