Antitrust Laws and the Future of Market Competition

Abstract

Purpose: The general objective of the study was to investigate antitrust laws and the future of market competition. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to antitrust laws and the future of market competition. Preliminary empirical review revealed that while existing antitrust frameworks had been instrumental in promoting competition and preventing monopolistic practices, they faced significant challenges in the digital age. The rapid evolution of technology and the rise of digital platforms had created new competitive dynamics that traditional antitrust laws struggled to address. The dominance of a few tech giants led to market concentration, reducing the scope for competition and innovation. The study highlighted the inadequacies of current antitrust enforcement in dealing with digital platforms, data control, and network effects. Additionally, it emphasized the need for international cooperation and a balanced approach to antitrust enforcement that considered both competition and innovation to ensure that the benefits of the digital economy were widely shared. Unique Contribution to Theory, Practice and Policy: The Structure-Conduct-Performance (SCP) Paradigm, Contestable Market Theory and Innovation and Monopolistic Competition Theory may be used to anchor future studies on antitrust laws and the future of market competition. The study recommended updating theoretical frameworks to include factors like data control and network effects, and adopting more flexible and adaptive approaches in antitrust enforcement. It advocated for the creation of specialized regulatory units focused on digital markets, equipped with the necessary resources and expertise. The study also highlighted the importance of international cooperation in antitrust enforcement to address cross-border anti-competitive practices effectively. Furthermore, it suggested continuous dialogue with industry stakeholders to develop more informed policies and emphasized the role of consumer education in promoting competitive markets. These recommendations aimed to enhance antitrust laws and ensure robust market competition in the digital age.