Implications of E-commerce for Competition Policy

6 June 2018 Paris

E-commerce has changed not merely how consumers shop, but also the range of providers from which consumers can buy products and services. The growth of e-commerce has the potential to increase competition within retail markets, to greatly enhance consumer choice, and to prompt and facilitate innovation in product distribution.

However, recent enforcement and advocacy work of a number of competition authorities has showed potential for anti-competitive behaviour to occur within the online environment. Fears regarding potential market segmentation are therefore a notable concern within a number of agencies which have examined the issue of competition within the e-commerce sector. Other questions are also often raised with regards to the market definition in the e-commerce sphere, vertical and horizontal restrictions, unilateral conduct with the internet of things and merger controls.

In June 2018, the OECD held a roundtable discussion to explore the growing phenomenon of e-commerce in terms of its implications for competition law and policy within the OECD. The discussion also tackled competitive dynamics and recurrent competition problems within e-commerce markets, and considered likely future competition issues that may emerge within this rapidly expanding and highly innovative sector.

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