Tackling the Challenges Raised by the Digitalization of the Economy: Recent Experiences of the French Competition Authority

• Published date: 01 March 2019
• Date: 01 March 2019
• DOI: 10.1177/0003603X18822577

Article

Tackling the Challenges Raised

by the Digitalization of the

Economy: Recent Experiences

of the French Competition

Authority

Isabelle de Silva*

Abstract

The digitalization of the economy has brought about new challenges that the French Competition

Authority is determined to tackle, both through its enforcement activities and its advocacy tools.

These past years the Authority has examined discriminatory practices and the use of price-parity

clauses by digital platforms. It has also addressed the specifics of two-sided markets and looked into

the competitive pressure exerted by online retailing. Recently, it examined a merger between two

online platforms. To develop a better understanding of the particularities of the digital world, the

Authority thoroughly examined the workings of the French online advertising market. It works closely

with other European competition authorities to develop a shared doctrine on various issues such as

open and closed ecosystems, data, or algorithms.

Keywords

French Competition Authority, digital platforms, discrimination, price parity clauses, two-sided

markets, online retailing, online advertising, ecosystems, data, algorithms

Digitalization has affected the way undertakings compete among themselves. Innovation and quality

rather than price have become the predominant parameter of competition. Innovation cycles progress

at a very fast pace; new offers follow upon one another, disrupting long-established positions. There is

a growing prevalence of “free” services, as market players put in place two-sided models, with one side

subsidizing the provision of the services to the other. Actors extend their reach farther than ever before,

and there is a move towards a few globalized actors acquiring a “gatekeeper” position. Data has

become a driving commodity of the online economy, and businesses rely more and more on sophis-

ticated technological tools like algorithms.

*President, French Competition Authority, Paris, France

Corresponding Author:

Isabelle de Silva, President, French Competition Authority, Paris, France.

Email: isabelle.de-silva@autoritedelaconcurrence.fr

The Antitrust Bulletin

2019, Vol. 64(1) 3-10

ªThe Author(s) 2019

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DOI: 10.1177/0003603X18822577

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