Agency's Strategy Regarding Market Dominance
In a recent interview with German newspaper "Die Welt", Jürgen Kühling, the new chairman of the Monopol Commission, voiced concerns about the current approach of European competition authorities against U.S. internet giants like Google, Amazon, and Facebook. Kühling called for the expansion of the cartel authorities, particularly in the field of IT specialists, to enable them to act on equal terms with market-dominant companies.
Kühling expressed his worry that European competition authorities are fighting these companies with one hand tied behind their backs, bearing the full burden of proof. He believes this expansion is necessary to address the significant information asymmetries that exist between the competition authorities and the market-dominant companies.
The European Commission is currently modernizing its competition policy, with announced overhauls of merger control guidelines emphasizing a more forward-looking, innovation- and digital-economy-aware approach. This implies a need for technical expertise to assess digital markets, but specific personnel increases have not been detailed.
EU digital regulation initiatives, such as the upcoming Digital Networks Act, are designed to address the fast-evolving digital landscape. These initiatives are expected to strengthen regulatory capabilities, including technical competences, but explicit staffing proposals are not yet published.
Recent developments show competition authorities like the Dutch ACM seeking expanded investigative powers, suggesting parallel needs for expertise in complex digital transactions.
While explicit public proposals for expanding cartel authorities’ IT personnel numbers are yet to emerge, the trend towards more agile, innovation-aware, and tech-savvy regulatory enforcement strongly suggests such expansions will be part of the forthcoming legislative and administrative implementations.
Kühling also pointed out that the duration of the Google case is too long for digital markets. He stated that the remedies in the cases against Google, Amazon, and Facebook have not resulted in a noticeable boost in competition on the affected markets.
These comments come at a time when Europe is actively reforming its digital and competition frameworks to better regulate U.S. internet giants and address information asymmetries. The anticipated expansions in the cartel authorities' personnel, particularly in the IT sector, are expected to play a crucial role in this endeavour.
- The anticipated expansions in the cartel authorities' personnel, particularly in the IT sector, could potentially provide them with the necessary technical expertise to act on equal terms with market-dominant companies like Google, Amazon, and Facebook.
- The European Commission's modernization of its competition policy, with an emphasis on innovation- and digital-economy-aware guidelines, coupled with the EU's digital regulation initiatives, highlight the need for a significant increase in IT specialists within cartel authorities to strengthen regulatory capabilities and address information asymmetries.
