Forward

Digital competition is booming worldwide. Competition authorities are focusing their enforcement efforts on digital antitrust and merger cases more than ever before. They are exploring new theories of harm, including concerns over acqui-hiring (e.g., Microsoft/InflectionAI arrangement) and data-sharing (e.g., EC Meta Tying, Indian WhatsApp, and Turkish Threads cases). Authorities are also increasingly considering structural remedies to address competition concerns, such as in the US DOJ’s Google lawsuit and Canada’s Google online advertising case.

In addition to enforcement, advocacy efforts are expanding. Generative AI is a prominent focus, with new studies in Portugal (on open models) and Australia (on general search), while algorithmic pricing continues to attract attention (e.g., ongoing work in the UK). Meanwhile, gatekeepers in Europe are dynamically adjusting their compliance strategies to meet the Digital Markets Act (DMA) requirements. Outside Europe, Australia is proposing a new digital competition regime inspired by the DMA and other digital market frameworks.

Celebrating One Year of Digital Competition

Next month marks the first anniversary of Digital Competition, and what a journey it has been, similar to climbing a mountain–hard, risky but enjoyable. My passion for the field is my driving force; I provide expertise because I genuinely love the work.

In just one year, I have achieved the following milestones:

• Published 25 papers, 8 infographics, and 2 trackers (on the DMA and Section 19a GWB). You will also find trackers on proposed DMA compliance solutions and studies on GenAI by competition authorities.

• Released 11 newsletters and participated in 6 conferences.

• Trained staff from 3 public and private organisations on digital and AI markets across 3 continents.

• Travelled to 8 countries to engage with the global digital and competition community.

• Quoted in 11 top global news outlets.

• Numerous competition authorities have referenced my work on Generative AI in their market studies on the topic.

As I continue this exciting journey, I am eager to hear how I can support your work. Let’s connect to exchange ideas on digital and competition issues. Feel free to reach out at your convenience to arrange a meeting.

My Work

Working paper: Assessing the Competitive Dynamics of AI Partnerships. 

Nicole Kar and I categorise partnerships, examine competition challenges, and propose recommendations to competition authorities to foster innovation and legal certainty. The paper

Working paper: Vestager’s Legacy in Digital Competition Policy. 

Margrethe Vestager has profoundly influenced competition in digital markets and shaped the development of competition policy. The incoming Competition Commissioner must build on Vestager’s legacy to strengthen both competition and European competitiveness. The paper

Opinion: Answer Engines Reshape the Information Economy. 

As answer engines drive a new information economy, they should freely use content for AI training but compensate content creators when their work is used to generate answers. The opinion

Training: Winter School on Digital and Competition Policies.

The winter school provides insightful lessons on the fast-changing regulatory and market developments related to digital and AI markets. The winter school

This month, I had the privilege of training the staff of the Canadian Competition Bureau. It was an incredible experience to support the authority in addressing complex legal and policy challenges. I also had the opportunity to engage with the competition and AI communities in New York and Seattle. I would be delighted to explore how I can also support your work. Feel free to reach out. I look forward to connecting!

Consultations: Struggling with Europe's Digital Regulations? 

I am here to help companies, law firms, and authorities overcome the complexities of cross-regulatory issues in Europe through strategic insights and policy advice to ensure they consistently navigate digital regulations.

Research projects: Let’s work together

I am open to collaborating on research projects related to digital and competition policies, with a focus on:

• Generative AI: E.g., Market and regulatory developments.

• Platform Regulation: E.g., Impacts on emerging technologies.

• Competition: E.g., Reviews of non-notifiable mergers.

• Digital Regulations: E.g., Ensuring consistency among overlapping digital rules.

• Competitiveness: E.g., Crafting a pro-competitive growth strategy for Europe.

I am actively seeking funding opportunities from corporations or public institutions to support these initiatives. Additionally, I am available as an expert to provide guidance on DMA-related matters. If you’re interested in discussing any of these topics further, please feel free to reach out.

News

Generative AI

Anthropic Partnerships

The UK Competition and Markets Authority (CMA) cleared the Google/Anthropic partnership, stating it does not meet the UK's jurisdictional threshold. Meanwhile, Amazon has deepened its collaboration with Anthropic, including a significant new investment. UK Google/Anthropic partnership. Amazon/Anthropic partnership

Microsoft/InflectionAI Arrangement

The German competition authority concluded that the Microsoft/InflectionAI partnership does not meet the country’s jurisdictional thresholds for merger review. However, the arrangement has been classified as de facto control, making it subject to German merger control law and meeting the transaction-value-based threshold. The partnership

Microsoft/OpenAI Partnership

The Microsoft/OpenAI partnership has attracted regulatory scrutiny. Google reportedly urged the US Federal Trade Commission (FTC) to investigate alleged exclusivity clauses. Similarly, the European Commission has already sent requests for information regarding such clauses. FTC inquiry. Commission inquiry

Germany Proposes New AI Rules

Following its inability to review the Microsoft/OpenAI and Microsoft/InflectionAI partnerships due to jurisdictional limitations, the President of the German competition authority has called for amendments to the country’s merger control rules. The proposal aims to allow greater oversight of AI partnerships. Germany

New Studies on AI and Competition

The Australian Competition and Consumer Commission (ACCC) has published a study on general search services, focusing on the role of generative AI in market development. Meanwhile, the Portuguese competition authority released a paper highlighting competition risks related to access to open-source AI models. The Australian study. The Portuguese paper

UK Parliament Report on News and GenAI

The UK Parliament has issued a report on the future of news, raising concerns about GenAI’s impact on publishers' dependency on large online platforms. The report suggests that the CMA investigates potential anti-competitive practices related to the acquisition of AI training data by major tech firms. It also recommends regulating providers of GenAI-generated news summaries as publishers. The report

Digital Markets Act (DMA)

Booking.com

As a designated gatekeeper under the DMA, Booking.com has submitted its first compliance report to the European Commission. The report

Meta

Meta has updated its controversial "pay-or-consent" business model. Users of its ad-supported free service can now choose whether to consent to data collection for personalised advertising. This change seeks to address the European Commission’s preliminary finding that the original model violated the DMA. Interestingly, I advocated for a similar adjustment in a previous Bruegel blog post when Meta initially announced its business model. Meta. Bruegel blog post

Google

Google has announced updates to how comparison websites are displayed in its search results, aiming to address concerns raised by the European Commission and various stakeholders. However, some stakeholders remain dissatisfied with the changes, as reflected in a letter submitted by a group of stakeholders. Google. Letter from a group of stakeholders

Competition

Meta Tying Case (Europe)

The European Commission has fined Meta for tying Facebook Marketplace to Facebook and imposing unfair trading conditions related to ads data. The Commission identified the leveraging of Facebook’s extensive distribution channel (read its user base) as a potential abuse of dominance. This case signals increased scrutiny of platform ecosystems and their business practices. Meta tying case

WhatsApp Data-Sharing Case (India)

The Indian competition authority found that WhatsApp abused its dominant position by revising its 2021 privacy policy to force WhatsApp users to share data with other Meta services if they want to continue using WhatsApp. In response, the authority restricted data-sharing between WhatsApp and other Meta services. This decision highlights the intersection of competition and privacy laws. The case

Threads Data-Sharing Commitments (Turkey)

Meta-owned Threads offered commitments to address concerns about data-sharing with Instagram. Turkish users will now have the option to use Threads without an Instagram account and can decide whether to share data with Instagram. The remedy aligns with the DMA’s ban on combining user data without consent. The commitment

Google Breakup Proposal (US)

The US Department of Justice has proposed divesting Google Chrome in its ongoing antitrust lawsuit. While some question who might acquire Chrome, the key issue remains whether such a divestiture is proportionate to resolving the competition concerns. The proposition

Google Online Advertising Case (Canada)

The Canadian competition authority concluded that Google abused its dominance in online advertising by tying and leveraging its ad tech tools. The authority proposed divesting Google’s ad tech assets, aligning with similar recommendations in Europe. Canada. Europe

Apple In-App Payments (Brazil)

Drawing from the DMA, the Brazilian competition authority ordered Apple to permit developers to use external links and alternative in-app payment processing options. The case

Algorithmic Pricing (UK)

The UK’s CMA revisited concerns around algorithmic pricing, publishing papers on algorithmic collusion and dynamic pricing. This builds on prior work, such as its 2013 study on personalised pricing. Algorithmic collusion. Dynamic pricing. Personalised pricing

Web Browsers and Cloud Gaming Market Study (UK)

The UK CMA’s study highlighted competition concerns in web browsers, recommending Apple and Google be subject to the forthcoming DMCCA. However, no issues were found in cloud gaming. The DMCCA would allow the CMA to impose codes of conduct on firms with Strategic Market Status (SMSs). The study

Vodafone/Three Merger (UK)

The UK CMA cleared the Vodafone/Three merger, subject to investment commitments. This decision is pivotal, as telecom operators and policymakers in Europe have long pushed for consolidation in the sector, with the Draghi Report endorsing investment conditions as a solution. The merger

Nvidia Under Antitrust Scrutiny (China)

The Chinese competition authority launched an investigation into Nvidia over undisclosed concerns. Nvidia has already announced several antitrust investigations in France, Europe, the US, and China in its November 2023 10-Q report. The case. Nvidia announcement

Withdrawal of EU Article 22 Guidance

Following the Illumina/Grail judgment, the Commission withdrew its guidance on Article 22, which allowed Member States to refer non-notifiable transactions. The announcement

New Competition Policy Updates (Europe)

In her inaugural speech, Competition Commissioner Teresa Ribera announced plans to update EU competition policy to address challenges from new technologies, global competition, and climate change. However, the specifics remain unclear. Emerging buzzwords like “just”, “competitiveness”, and “resilience” are expected to shape the narrative. The speech

Australia’s Proposed Digital Competition Regime

The Australian government has introduced a new digital competition framework based on recommendations from its competition authority. The proposal mirrors service-specific obligations in the UK’s DMCCA and the EU’s DMA. The proposal