Digital platforms

Artificial Intelligence (AI) is poised to permeate across different industry sectors, offering unprecedented opportunities alongside significant risks. Effective governance necessitates coordinated cross-border efforts to build institutional expertise, dispel misconceptions, foster innovation, and align global safety priorities. Advocating structured dialogue and a bottom-up approach, Oscar Borgogno and Alessandra Perrazzelli present a proposal which aims to avoid institutional redundancy and legal unpredictability for individuals and firms.

Judge Amit Mehta's ruling declaring Google a monopolist in search represents a significant development in the ongoing debate about Big Tech's market dominance. This decision, stemming from a United States Department of Justice lawsuit, highlights the culmination of years of discussions and research on antitrust issues in the technology sector, particularly surrounding Google's search practices.

Roslyn Layton discusses the major outage caused by a software update from CrowdStrike. Layton explores the debate between the risks of concentrated IT security solutions as well as their benefits. She discusses the market response to the incident and examines potential solutions, including AI-driven testing and incremental rollouts, while arguing against government intervention as a fix.

Excerpted from THE INFLUENCER INDUSTRY: The Quest for Authenticity on Social Media © 2023 by Emily Hund. Reprinted by permission of Princeton University Press.

In new research, Giovanna Massarotto explains how collusion manifests differently in the digital economy. She argues that antitrust regulators, scholars, and courts need to incorporate lessons from computer science to update how they monitor markets and identify algorithmic collusion.

Joshua Gray and Cristian Santesteban argue that the Federal Trade Commission's focus in Meta-Within and Microsoft-Activision on narrow markets like VR fitness apps and consoles missed the boat on the real competition issue: the threat to future competition in nascent markets like VR platforms and cloud gaming.

Recent European digital regulation surrenders traditional key guideposts of European competition law and policy. The over-centralization of European Union antitrust authority and EU legislation risks undermining member state laws and competences. This may privilege platforms and eventually harm competition and consumers, writes Jörg Hoffmann.

Friso Bostoen’s new book, Abuse of Platform Power: Leveraging Conduct in Digital Markets under EU Competition Law and Beyond, outlines how antitrust agencies and policymakers should tackle market power in the platform economy. The following is an adaptation of the book’s introduction.

Maurice Stucke explains three policy approaches to algorithmic collusion and discrimination, and makes the case for a broader ecosystem approach that addresses not only the shortcomings of current antitrust law and merger review, but extends beyond them for a comprehensive policy response to the many risks associated with artificial intelligence.

New research indicates that FinTech lending has not been as ‘disruptive’ in risk-based pricing as claimed. While FinTech has provided increased loan access to some individuals, reliance on traditional credit scoring and spillovers from banking regulations leads to mispricing and cross-subsidization of borrowers. The authors suggest alternatives to allocate capital efficiently and improve financial inclusion.