Stay in your lane? Regulators are grappling with the competitive effects of growing business ecosystems

Frontier Economics, David Lawrence, David Parker, Carlotta Bonsignori and Francesca Montrasio, May 2021, News and Articles

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Recently, the UK Competition and Markets Authority (CMA) has voiced concerns that entry by an established (particularly digital) firm into new markets can be a ‘defensive’ strategy employed to protect its position in an existing core market. Here we ask: what would need to be true for such diversification to have anti-competitive effects? And what would be the appropriate regulatory response in this situation?

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Chicago-Kent College of Law

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German Competition Authority (Bonn)

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Brazilian Administrative Council for Economic Defense (CADE) (Brasilia)

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Mexican Competition Authority (Mexico City)

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Monash University

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