Author(s)
Deeksha Upadhyay, Aditi Mishra Assistant Professor
- Manuscript ID: 140279
- Volume: 2
- Issue: 6
- Pages: 207–217
Subject Area: Other
Abstract
The rapid evolution of digital markets has changed a lot the way we understand competition law with a great focus on market power and dominance. In sharp contrast to regular industries, digital ecosystems are mainly set up through a platform-based business model where besides the economic transaction, the collection and processing of user data have become very important. Moreover, network effects that increase the value of platforms as more users join them and data concentration are factors that have enabled dominant firms not only to strengthen their position but also to affect consumer behavior. Therefore, one of the key issues is the extent to which the Competition Act, 2002 is capable of dealing with the concept of abuse of dominant position.
Here a study is presented on how Indian competition law can adjust to the changes that are happening in digital markets. The paper looks at evolutions of multi-sided platforms like e-commerce marketplaces, search engines, and app-based services, which typically provide goods or services free or at very low prices but monetize their business by collecting data, targeted advertising, and controlling algorithms. A setup like this makes the whole process of identifying market power quite challenging where the competition is no longer indicated mainly by price. The research throws light on some major issues such as algorithmic pricing, self-preferencing, exclusive agreements, and data-driven entry barriers. In addition, the research discusses how heavy investments and dominance over digital infrastructure lead to market concentration and create barriers for the newcomers. A comparative perspective is also adopted for recognizing worldwide regulatory practices and pointing out the gaps in the Indian legal system.
In the end, it is mentioned that maintaining fair competition in digital markets cannot be achieved without a legal framework that is both dynamic and capable of evolving, in order to effectively deal with the intricacies of data-driven economies and the dominance of platforms.