Opinion | Of digital competition and data transfer principles

The UK’s Digital Competition Expert Panel recently issued its report with suggestions on how to regulate competition in the modern age. It is an interesting read and will doubtless serve as reference for regulators around the world who are looking to address similar issues in their jurisdictions.

One of the principal concerns expressed by the Panel was the harmful effects of concentration in the digital ecosystem—in particular the kind that results from network effects. A digital platform becomes significantly more valuable when the number of users on it grows past a certain critical mass. However, very soon thereafter, the platform crosses into a winner-takes-all zone where it gets so big that it becomes next to impossible for any new entrant to compete with it.

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