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

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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?