Best Practice Roundtables on Competition: Theories of Harm for Digital Mergers

The discussion highlighted the fact that specific features of digital mergers, such as the prominent role of platform ecosystems relying on strong network effects, high quality algorithms, economies of scale and data-driven economies of scope, bring into question the ability of traditional theories of harm to reflect the real competitive harm that may result from mergers in these markets.

Contributions from delegates indicated that many jurisdictions have already sought to fine-tune theories of harm to better reflect the specific characteristics of digital markets, including to account for network effects, harms to innovation and privacy, and the potential for mergers to entrench ecosystems. Some delegates indicated their intention to move further in this direction, including through the revision of merger guidelines, while others encouraged caution and a need to first identify a clear enforcement gap in unambiguous terms. Challenges were identified, including with respect to the ability of competition authorities to continue meet legal tests and standards of proof.

Read the executive summary with key findings EN | FR

Read the detailed summary of the discussion EN | FR

Luís Cabral Bio 
Paganelli-Bull Professor of Economics, New York University Stern School of Business

Annabelle Gawer Bio 
Professor in Digital Economy & Director, Centre of Digital Economy, University of Surrey

Viktoria Robertson Bio 
Professor of Competition Law, Vienna University of Economics and Business & University of Graz

OECD Background Note | Note de référence de l'OCDE

Note by Viktoria Robertson

Detailed Summary of the discussion EN | FR

Executive Summary with key findings EN | FR

Contributions from participating delegations

Presentations

OECD Secretariat |  Luís Cabral  |  Viktoria Robertson  |  Annabelle Gawer

Start-ups, killer acquisitions and merger control (2020)

Competition Economics of Digital Ecosystems (2020)

Quality considerations in the zero-price economy (2018)

Non-price effects of mergers (2018)

Merger control in dynamic markets (2019)

Conglomerate effects of mergers (2020)

The concept of potential competition (2021)

Ex Ante Regulation and Competition in Digital Markets (2021)

Rethinking the use of traditional antitrust enforcement tools in multi-sided markets (2017)

Vertical mergers in the technology, media and telecom sector (2019)

The OECD promotes re‌gular exchanges of views and analysis on competition policy issues through its Competition Committee, Global Forum on Competition and Latin American Competition Forum. These roundtables provide insight into the thinking of leading competition authorities of OECD and non-OECD member countries. They are also a unique source for competition experts in business, law, economics, consulting and academia.

All related materials from these discussions, including submissions from countries, invited experts and presentations are made publicly available.

For more topics, see also our paper series "OECD Roundtables on Competition Policy Papers"