Digital dominance: assessing market definition and market power for online platforms under Article 102 TFEU

Abstract

The traditional, price-focused antitrust tools for assessing dominance under Article 102 TFEU and merger control are challenged by the business models and features of multisided digital platforms. This article demonstrates the importance of data in digital markets and how data enable the utilization of network effects and economies of scale in a manner that challenges the traditional dominance evaluation. Based on this, the article systematizes the solutions to the challenges caused by decreased accuracy of price-based tools through an analysis of various approaches to the issue. It is argued that potential competition should be emphasized more strongly throughout the dominance assessment and that different approaches can be chosen based on the case at hand. Thus the article contributes to the development of the dominance analysis for digital markets with a thorough overview of possible solutions and ties it to the proposed renewal of the Market Definition Notice.