The competition law and data advantage conundrum
Competition law is challenged by the unique dynamics of internet platforms, which prioritize growth and customer lock-in over short-term profits. These platforms often operate at a scale that traditional businesses can’t match, and their data advantage allows them to tailor services precisely. While this leads to better user experiences, it also results in a winner-takes-all dynamic, limiting customer choice. Regulating these platforms is complex, as breaking them up might deny consumers the benefits they offer, and traditional competition remedies may not be applicable to the digital market.