OECD/KPC Workshop Explores Competition Rules for Digital Platforms

Date: April 21, 2022

In a groundbreaking three-day virtual workshop organized by the Organisation for Economic Co-operation and Development (OECD) and the Korea Policy Center for Competition (KPC), over 80 participants, including speakers from OECD, the UK's Competition and Markets Authority (CMA), and the European Commission, came together to delve into the complexities of competition rules for digital platforms.

The workshop, held from April 19th to 21st, 2022, aimed to achieve two crucial objectives. Firstly, it sought to develop a comprehensive understanding of the economics behind digital platforms, analyzing their unique characteristics and their impact on competitive dynamics. Armed with this knowledge, competition authorities can make informed decisions on whether to intervene in digital markets. Secondly, the event facilitated the sharing of valuable experiences from agencies that have dealt with cases involving digital platforms.

The opening day witnessed Mr. Ruben Maximiano, Senior Expert and Regional Manager for Asia-Pacific at OECD, and Mr. Jungwon Song, Director General of OECD/KPC Competition Programme, delivering the opening remarks, setting the stage for an engaging and insightful event.

Professor Dr. Martin Peitz from Manheim University took the reins on the first day, conducting an illuminating 3-hour mini-course on the economics of digital platforms. The topics covered included network effects, platform definitions, pricing, governance, market definition, and market power.

Day two of the workshop focused intently on abuse of dominance cases in the digital realm. Mr. Ruben Maximiano led discussions on e-commerce cases, bringing attention to potential abuses like tying and bundling, predatory pricing, forced free-riding, and discriminatory leveraging. Notable case studies, such as the EU's Google Shopping case and Korea's sanctioning of Google, enriched the deliberations.

The final day featured presentations on "killer acquisitions" by Mr. Wouter Meester of OECD and insightful analysis of merger guidelines by Ms. Imogen Ditchfield (Assistant Director Mergers, CMA) and Ms. Leow Rui Ping from the Competition and Consumer Commission of Singapore (CCCS).

The event concluded with Mr. Antoine Babinet of the European Commission providing a comprehensive overview of the recently agreed Digital Markets Act (DMA), which was expected to come into force by the end of 2022. The DMA aimed to address market failures, curb unfair conduct by gatekeepers, and establish coherence and legal certainty in the digital markets.

Overall, the OECD/KPC workshop on Competition Rules for Digital Platforms succeeded in fostering a deeper understanding of the intricate challenges posed by digital platforms and equipped regulators with crucial insights to ensure fair and competitive markets in the digital age.