Digital disruption is blowing a Schumpeterian gale of creative
destruction throughout the global economy. These winds of change
are delivering substantial increases in consumer welfare. The
glowing glass screen of a smartphone enables us to access the
library of all human knowledge. We can order any imaginable good or
service; literally at our fingertips.
Yet competition challenges are arising. Firms bearing the brunt
of digital disruption are seeking regulatory protection. Those
firms riding the winds of change are achieving significant market
power. Global debate is occurring regarding the extent to which
regulatory intervention is appropriate.
So what are the competition implications of 'digital
disruption'? Why are competition issues arising and what can we
expect in the coming years? This article provides a summary of the
types of competition issues arising and some useful background and
context.
