This paper examines the competitive dynamics of digital markets and multi-sided platforms, focusing on how big data enables major platforms like Meta and Google to dominate by leveraging user data for tailored services, thus enhancing economies of scale. The scarcity of accessible big data creates significant entry barriers for new companies and solidifies the dominance of established players, often allowing them to shape market behavior independently. Multi-sided platforms, where different consumer groups interact on various sides of a single platform, further complicate competition law due to cross-group network effects. These platforms typically monetize one side of the market while offering free services to others, posing challenges in measuring market share and dominance mathematically.
The paper highlights that the rise of big data and multi-sided platforms in the digital economy has led to novel abusive practices, such as self-preferencing and refusal to access essential facilities. Using the Google Shopping case as an example, the paper explores how self-preferencing can harm competitors by giving preferential visibility to a platform’s own services, which may not reflect objective relevance but instead commercial interests. The Google case also illustrates the limitations of traditional doctrines, like the essential facilities doctrine and the Bronner test, in handling digital competition issues effectively.
In comparing the EU and Indonesian legal frameworks, the study finds that while the EU has pioneered regulations such as the Digital Markets Act (DMA) to curb these abuses, Indonesian competition law lacks specific provisions for digital markets. Indonesian law does, however, recognize some elements of discriminatory practices and consumer data protection, as seen in its competition and data privacy laws.
In conclusion, adapting competition law to digital markets’ unique challenges requires a holistic framework that addresses the intersection of data protection and competition law. For Indonesia, implementing regulatory reforms inspired by the EU’s approach could help curb anti-competitive behaviors in the digital economy.
Author: Ria Setyawati1, Stefan Koos2, Zalfa A.F. Jatmiko3
https://jurnalius.ac.id/ojs/index.php/jurnalIUS/article/view/1377/626
