Flexible economic regulation under a liberal worldview: the case of the proposal for a Digital Markets Act

Abstract

Classical liberalism emphasizes the sovereignty of the legislator, based on the social contract. However, even in liberal politics, discretionary powers need to be granted to the judiciary and the executive in order to apply general rules to individual cases, including cases which could not be foreseen. This implies that rules need to be flexible, in particular when regulating areas marked by great uncertainty, such as fast-moving technology markets. The European Commission’s proposal for a Digital Markets Act builds in certain flexibilities, but could have gone further in this respect, also in light of the Commission’s own Better Regulation Toolbox.