INTRODUCTION
The digital economy has a highly wide-ranging impact and has a significant influence on the actions of many human beings. Over the course of our social and economic activities, it has been highly effective in exerting an influence. While writing his best-selling book “The Digital Economy: Promise and Peril in the Age of Networked Intelligence” (1995), Don Tapscott is credited with being the first person to use the term “Digital Economy.”[1] Markets that are centered on digital technologies are referred to collectively as the digital economy, which is an umbrella term on its own. In most cases, it entails the exchange of information, services, or goods through the medium of electronic commerce. A significant amount of economic growth has occurred over the past couple of years as a result of the expansion of this sector. Additionally, the shift in technological paradigm has had repercussions on the markets that extend far beyond the limitations of the digitalization context alone. In addition, the proliferation of mobile devices has led to a rise in the availability of the internet throughout the course of the years. In light of this, the exponential expansion of this industry can be attributed to the growing number of people who are participating in the digital economy.
The digitalization of many sectors within the traditional economy has had a significant impact on the operations of regular and traditional enterprises, and because of this, the markets that are associated with these firms have been changed. Traditional markets and digital markets are distinguishable from one another in a number of ways. The first thing to note is that a significant portion of the digital economy is founded on the personal data of users and the movement of this data from one platform to another. It is therefore uncommon to come across the typical units of transactions in a market, which are price and the amount of money paid. For instance, the turnover of a company is a key indicator of the size of its market. On the other hand, a digital platform may deal with many sides in an economy, where one side is subsidised by the other, meaning that the market is zero-priced.
A second point to consider is that the factors that have an impact on the market are extremely diverse. When compared to the traditional market, the sole pricing structures in the market do not serve as the primary factor in determining demand. The market concentration is consequently determined and promoted by the interaction of a number of different network effects simultaneously. When compared to the old economy, the digital economy is significantly more dynamic. The market strength of any company can be readily challenged due to the availability of an infinite number of routes to reach an end-user and supply digital services. Even the tiniest and most recent newcomer in the market can become a challenge to the business of an incumbent. This study begins with an examination of the primary stakeholder sectors of the digital economy. Based on this analysis, an identification of difficulties and challenges that are posed to the authorities in charge of competition legislation is made, with reference to sectors that were previously recognized and the digital economy as a whole. In the latter portion of this article, the authors have made an effort to present recommendations and inputs to the issues that were described earlier. These recommendations and inputs are based on the assessments that were done in the past, as well as the assertions that were made by competition law authorities all over the world and prominent legal experts.
EVOLUTION OF COMPETITION LAW
The Competition Law was established in 1890 with the enactment of the Sherman Anti-Trust Act in the United States. This legislation was implemented to safeguard the interests of the minority faction from the dominant influence wielded by the expansive conglomerates that emerged during the era of the Industrial Revolution. This was implemented to facilitate effective utilization of the tiny group’s resources by exerting control over their commercial operations in the market, in relation to other competitors. It was subsequently regarded as a fundamental cornerstone of the market economy. Subsequently, the “Competition Law” was implemented in a majority of both established and developing nations worldwide.
The Competition Law in India originated from Article 38 and Article 39 of the Indian Constitution in 1949[2]. These articles establish that the State is responsible for ensuring and safeguarding a social order. These Articles establish the regulations for protecting social, political, and economic fairness and ensuring that the possession and management of material resources in a community are distributed in a way that benefits the general welfare. Additionally, it is the responsibility of the State to prevent the accumulation of wealth as a result of the market economy.
[1]Kosha Gada, “The Digital Economy in 5 Minutes” Forbes (2016).
[2]The Constitution of India, art. 38, 39
