This paper looks at the rapid emergence of the digital revolution in the world economy and the way in which developing countries, in particular smaller developing economies in Africa, Asia and the Pacific, can respond to the competition-related concerns in this area. These countries are for the greatest part ill-equipped to face the competition challenges posed by giant international e-commerce platforms and will need to rapidly join the bandwagon of national and regional competition authorities’ efforts to come to grips with this new type of business models.
This paper looks at the rapid emergence of the digital revolution in the world economy and the way in which developing countries, in particular smaller developing economies in Africa, Asia and the Pacific, are getting involved in e-commerce. These countries are for the greatest part ill- equipped to face the challenge posed by giant international e-commerce platforms and will need to rapidly join the bandwagon of national and regional competition authorities’ efforts to come to grips with this new type of business models.
After looking at the characteristics of the main types of businesses involved in the digital economy, the paper examines broadly the potential benefits and challenges these firms bring to smaller developing countries, particularly in Africa, Asia and the Pacific regions. It then covers the main anticompetitive practices that may take place in e-commerce, including collusion in hard-core cartels, vertical restraints and abuse of dominance, as well as concentrations, whereby large businesses might eliminate small start-ups or larger competitors in domestic markets of smaller developing countries.
In conclusion, this paper examines the main lessons learnt and draws attention to the urgent need for all countries to come to grips with the anticompetitive challenges posed by the imminent conglomeration of the digital economy in each and every sector of our lives. While most developed competition authorities (CAs) need to reach consensus on their enforcement practices with regard to this type of businesses, more advanced developing countries CAs should cooperate with smaller developing economies, to ensure they are able to enforce competition rules in a proper way, avoiding actions which might stifle innovation and the spread of benefits of competition, while ensuring that they are able to control anticompetitive harm. Special concertation and cooperation efforts are also recommended for regional competition authorities, such as those of regional Free Trade Areas, which must rapidly take the lead in ensuring that e-commerce is not hampered by anticompetitive practices.