The Influence of Digital Market Act on Online Platforms' Competition

Qiuyu Lu

Studenteropgave: Kandidatafhandlinger


In the past decades, the EU has been trying to improve its digital policy to regulate the digital economy better. Currently, the two main aims are: fostering innovation and promote fair competition. However, achieving the latter goal might lead to overprotection and harm innovation. Therefore, this research focuses on the newly proposed Digital Market Act (DMA) and analyzes its influence on the online platforms’ competition. Moreover, the DMA's influence on innovation is supplementary to this research. In achieving the goals, the analysis is divided into two parts: Economic and Legal. For the economic analysis, it took a deductive and strategic approach and used literature review as the method to acknowledge the classical economic theories and apply them in discussing a specific case: Facebook, Inc. for observing the economic facts and laying a foundation to the legal analysis. The legal analysis can benefit by analyzing the previous competition law practice within the EU. Furthermore, the analysis of the DMA is focused on the concept of ‘gatekeeper’ and its obligations. This paper found that the online platforms are competing on the data and for the market share. They want to acquire more data and have full control of it. Accordingly, their innovations are conducted in expanding themselves to maintain their market position and prevent disruptors. The DMA specifically targets the very large platforms and imposes ex-ante rules to prevent anti-competitive behaviors. By forcing the ‘gatekeeper’ to have more transparency to the advertisers and to share more data with its business users. Thus, the DMA can shape a more contestable and fair digital market through disintermediation and remove data-driven entry barriers in order to make business users more independent, and promote competition. Additionally, it creates competitive pressure to incentivize innovation.

UddannelserCand.merc.pol International Business and Politics, (Kandidatuddannelse) Afsluttende afhandling
Antal sider74
VejledereAndrej Savin