A new reality requires new application of competition rules

E-commerce has seen strong growth in recent years. Applying current competition rules to this new economic reality is not always optimal.

“Applying the rules to new circumstances cannot always happen in the same way as when they appeared, but must be adapted to reality,” says Fredrik Lindblom who has recently published an article on this subject in the Thomson Reuter Competition Global Guide.

E-commerce has seen strong growth in recent years. Applying current competition rules to this new economic reality is not always optimal. “Applying the rules to new circumstances cannot always happen in the same way as when they appeared, but must be adapted to reality,” says Fredrik Lindblom who has recently published an article on this subject in the Thomson Reuter Competition Global Guide.

In his article, Mr Lindblom points out that the current European competition rules should perhaps not be the tool to decide how products and services are distributed, but rather that they must take into account the current reality; while the growth of e-commerce must not be hampered, traditional trade must continue to function, at least for the foreseeable future.

“The distribution of products and services undergoes a metamorphosis through the growth of e-commerce. E-commerce is of course positive and offers many new possibilities and benefits, but it should not necessarily be protected at any price. This can cause undesirable long-term effects which in the end risk impoverishing the pace of innovation,” says Fredrik Lindblom.

Read the article “The application of European competition rules on vertical agreements to online trading” as a PDF here.

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