Competition Law in Practice
Regulating Digital Markets Before Harm Happens
Why many countries are moving from case-by-case enforcement to upfront rules for big digital platforms, from Europe's Digital Markets Act to India's debate.
Traditional competition cases take years. By the time a case ends, a digital market may have tipped permanently toward one firm. This has led many governments to consider ex ante rules: obligations that apply in advance to the largest platforms, rather than punishing harm after it happens.
Why digital markets are different
- Network effects can make markets tip quickly toward one winner.
- Data advantages reinforce dominance.
- Ecosystems let firms leverage power across many services.
- Speed: harm can become irreversible before cases conclude.
The European Union
The Digital Markets Act, or DMA, adopted in 2022, applies to large platforms designated as gatekeepers, including companies such as Alphabet, Apple, Meta, Amazon, Microsoft and ByteDance. Gatekeepers must, for example:
- Allow users to uninstall pre-installed apps and choose default services.
- Not favour their own products in rankings, called self-preferencing.
- Allow business users to access their data.
- Allow alternative app stores and payment options in certain cases.
Fines can reach 10 percent of global turnover, or 20 percent for repeat breaches. The European Commission issued its first non-compliance fines against Apple and Meta in 2025.
The United Kingdom
The UK’s Digital Markets, Competition and Consumers Act, 2024 allows its competition authority to designate firms with strategic market status and impose tailored conduct requirements.
India’s debate
A government committee proposed a draft Digital Competition Bill in 2024, modelled partly on the EU approach, to regulate systemically significant digital enterprises. Industry groups and start-ups raised concerns about compliance costs and effects on innovation, and the government decided to study the market further before proceeding.
The trade-offs
- Supporters: faster, clearer rules protect competition and help smaller firms.
- Critics: rigid rules may harm innovation, reduce product quality or security, and burden firms.
Under the EU's rules, when users in Europe set up a new phone, they are shown a choice screen to pick their default browser and search engine, instead of having one pre-set. Smaller rivals reported gains in users after choice screens appeared.
Ex ante rules complement traditional competition enforcement. Authorities still investigate cartels, mergers and abuses case by case.
- Ex ante rules set obligations for the largest platforms in advance.
- The EU's Digital Markets Act designates gatekeepers with specific obligations.
- The UK introduced strategic market status rules in 2024.
- India proposed a Digital Competition Bill in 2024 but chose to study the market further.
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