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What are the biggest challenges facing international competition law in the 21st century?

Ason Lowten

The biggest challenges facing international competition law in the 21st century are many and varied. These challenges arise not only from changes in technology and market structures, but also from political and economic shifts that have occurred since the turn of the century. In this paper, we will explore some of these challenges and their potential solutions.

One of the main challenges facing international competition law is the rise of platform economies and digital markets. Traditional competition law relied on the assumption that markets were simple, and firms competed on the basis of production and pricing. However, today’s digital markets are anything but simple. Firms are competing on the basis of data, which can be monopolized by a few players, and algorithms, which can be opaque and manipulative. One of the key questions facing competition law in this context is: how can we regulate data-driven markets in a way that promotes innovation, competition, and consumer protection?

Another challenge facing international competition law is the emergence of new forms of market consolidation and collaboration. Given the scale and complexity of global markets, it is increasingly common for firms to engage in horizontal and vertical integration, forming partnerships and alliances that blur the traditional boundaries between suppliers, competitors, and customers. The challenge for competition law here is to strike a balance between encouraging collaboration and preventing anti-competitive conduct. One of the key questions facing competition law in this context is: how can we assess the competitive effects of new forms of market consolidation and collaboration?

A related challenge is the divergence of competition law regimes across different jurisdictions. As competition law has become increasingly globalized, with firms operating across multiple markets and jurisdictions, there is a risk that different legal systems will develop divergent standards and practices, leading to regulatory arbitrage and uncertainty. The challenge for competition law here is to find common ground between different legal systems, while respecting the autonomy and sovereignty of individual nations. One of the key questions facing competition law in this context is: how can we encourage convergence and cooperation between different jurisdictions without sacrificing their respective interests?

Finally, there is the challenge of regulatory enforcement and compliance. Even with the best of intentions, competition law is only as effective as its ability to be enforced and respected. In today’s complex and globalized markets, enforcing competition law requires not only legal skill but also technological expertise and international cooperation. The challenge for competition law here is to build effective enforcement mechanisms and to ensure that firms understand and comply with their legal obligations. One of the key questions facing competition law in this context is: how can we build more effective enforcement mechanisms at the national and international levels?

In conclusion, the biggest challenges facing international competition law in the 21st century are complex and multifaceted. However, by asking the right questions and seeking innovative solutions, we can ensure that competition law remains a vital tool for promoting competition, innovation, and consumer welfare in the global economy.