Policy makers on the evolution of the digital economy
It is definitely obvious that, the evolution of the digital economy has
created new dynamics that require a reset of some elements.
In effect, the rapid take-up of
technologies including mobile communications, digital platforms, big data,
cloud computing , social media, to name a few are changing the nature of
the products and services, and the ways people interact.
This transformation is disrupting existing business models and industries,
while offering substantial potential to enrich lives and raise living standards
for citizens around the world.
Based on these realities, policy
makers should review and update their competition and regulatory frameworks to
create an environment that will facilitate long-term, sustainable competition
and encourage innovation.
GSMA Report proposes a number of recommendations for policy
makers:
- The control of data can confer a competitive advantage and should be considered in competitive assessments;
- Price is not the only important factor in digital markets, and therefore market assessments should take a broader view;
- Market assessments, including merger reviews, should fully consider the dynamic effects and efficiencies that positively impact investments, quality of service and performance; and
- Better balance is required between sector regulation and competition law, with the latter augmented by better procedures and faster decision making.
