Regulation of the Digital Markets in the UK, US and the EU : Context, Criteria, Containment, and Beyond

Abstract

It is widely acknowledged there is a need for ex ante regulation to cope with the competition and consumer harms arising from the digital markets. Th is chapter investigates the policy approaches of the EU, the UK, and the US from the viewpoint of ‘ economic regulation ’ based on a three-step analysis aiming to explore; what products and services are encompassed within the context of each policy approach; what criteria are followed to designate the behaviours that need to be addressed; and what tools and remedies are contain ed to address such behaviours. Policy approaches are thereby reviewed to clarify how far each approach fits the principles of economic regulation. In conclusion, it is found that such principles are echoed to varying degrees within each policy approach. While reasonable peculiarities are visible within the meaning of context , for example based on the ‘core platform services’ (EU), ‘digital businesses’ (UK), and ‘covered platforms’ (US) respectively, the criteria to define undesirable market behaviours and ensuing remedies under containment pose unpredictabilities, particularly in the EU and the US approaches. Regulatory design and structure proposed in the UK approach with its substantiated links across the underlying three chains tips the balance to this policy framework. After all, it is concluded that unsubstantiated links within and across such chains particularly in the EU and US approaches contrast with a coherent economic regulation model and need reconsideration.