Transatlantic Competition Policy and Digital Markets

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Although it could be considered slightly hyperbolic, it is widely stated that we are currently experiencing an unparalleled period of great technological change, which is reflected in the behaviour of digitalised markets. Products and services that were practically unimaginable a few years prior are now quickly becoming obsolete and overshadowed by the potential new entrants on the horizon. As a result, markets for digital products and services are usually very concentrated, made up of only the few competitors that can afford to keep pace with the perpetually innovative race of research and development. Companies that cannot match their competitors rapidly exit the market, due to the huge influence of network effects causing the market to tip, as was the case in the early social media and general search engine markets.