Digital markets have already become an integral part of the economy and are replacing the traditional markets. In this regard, digital markets are argued to have distinct characteristics due to the complexities in business models compared to traditional markets and whether there is a need for an ex-ante regulation in digital markets happens to be a highly debated topic in competition law. Such questioning even resulted in regulatory efforts in various jurisdictions, especially in the European Union with the ongoing legislative process of the Digital Markets Act.
Mr. Gönenç Gürkaynak of ELIG Gürkaynak Attorneys-at-Law and Mr. Miguel Perez Guerra, Head of Antitrust EMEA at PayPal will discuss as to whether there is a genuine need for regulating digital markets and whether current competition law tools are capable of dealing with digital markets. In this regard, the speakers will also discuss the risks that ex-ante regulations pose for digital markets and whether the existing competition law toolbox is adequate to address competitive concerns in digital markets. The ongoing legislative efforts are consequences of the belief that digital markets differ from the traditional markets since digital markets are characterized by, for instance, network effects, vertical integration, tipping markets or being data-centric. This belief leads some to conclude that existing competition law measures fail with regard to the digital markets, implying that there is a need for regulating digital markets. That said, the complexity and variety of business models associated with digital markets together with the importance of innovation for these markets render regulatory efforts a challenging task and it is an evident risk that regulatory efforts on that front may hinder companies' incentives to innovate, which is the main parameter in competing in digital markets.
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