The European Commission's approach to mergers involving software-based platforms: Towards a better understanding of platform power

The European Commission’s digital single market policies are increasingly concerned with the impact of so-called ‘platforms’ on competition in the internal market. Whereas the European Commission acknowledges the contributions of platform companies to innovation, it also sees actual and potential da...

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Veröffentlicht in:Telecommunications policy 2022-06, Vol.46 (5), p.102288, Article 102288
Hauptverfasser: Afilipoaie, Adelaida, Donders, Karen, Ballon, Pieter
Format: Artikel
Sprache:eng
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Zusammenfassung:The European Commission’s digital single market policies are increasingly concerned with the impact of so-called ‘platforms’ on competition in the internal market. Whereas the European Commission acknowledges the contributions of platform companies to innovation, it also sees actual and potential damages occurring from their powerful position. As such, the European Commission aims to strengthen the enforcement of its competition law rules in this area. The main research question is how the European Commission has been evaluating the competitive effects of platforms under merger control and whether its approach is adequate to address the manifold concerns related to platforms and competition. Based on a case study analysis, we conclude that the European Commission (1) recognises the platform circumstance, their essential intermediary role in the digital industry and the importance of maintaining fair competition; (2) its analysis has been slowly evolving becoming more granular; (3) platforms’ behaviour and not their size per se is most often the central concern; (4) the proposed Digital Services Act and Digital Markets Act packages tackle platform concerns identified in the European Commission’s ex-ante analysis, signalling that its analysis seems to have inspired their creation. •Concerns with the impact of platforms on competition in the internal market.•Platforms contribute to competition and innovation but can also damage it.•There is an evolution in the European Commission's understanding of platforms.•Platforms' behaviour and not their size is most often the central concern.•The European Commission’s platform merger analysis spurred the creation of the Digital Markets Act and Digital Services Act.
ISSN:0308-5961
1879-3258
DOI:10.1016/j.telpol.2021.102288