EU antitrust regulators are broadening the scope of their investigations into Big Tech’s merger deals and market power, now including the examination of digital ecosystems and the impact of free products or services, according to an announcement by EU competition chief Margrethe Vestager. The update to the nearly three-decade-old rules, known as the Market Definition Notice, aims to address the criticism that current antitrust and merger laws are outdated, particularly in the fast-evolving tech markets.
In cases involving Big Tech, the European Commission will now analyze multisided platforms and digital ecosystems, such as those built around mobile operating systems, to assess a company’s market power. Additionally, products and services offered for free will be considered in determining market dominance. The company’s market share may now be defined based on various factors, including sales, capacity, or the number of active users and website visits.
The updated rules also place greater emphasis on non-price elements, such as innovation and the development of new products, as well as reliable supply and the quality of products and services. This shift in focus could have implications for industries beyond tech, including the pharmaceutical sector. Another notable inclusion is the consideration of imports and their impact on EU businesses in the assessment by the EU antitrust watchdog.
“To maintain our markets’ competitiveness, we need to get the framework right because in the end competitive markets, they will serve consumers best,” emphasized Vestager during a news conference. The move signifies a proactive effort to adapt regulations to the evolving landscape of the technology market and ensure fair competition.
