Innovation and competition in digital ecosistems an approach from the emergence of dominant architecture
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Abstract
Objective: this work aims to explore the complexity of the role of innovation in competition law, with a focus on the additional challenges presented by digital markets. Thus, we sought to examine different approaches to innovation in economic theory and their influence on the decisions of competition authorities. To address this issue, the theory of dominant design was used as a theoretical framework that considers the specific characteristics of digital markets.
Method: the present study first analyzed theories of innovation to understand which approach would be most suitable for integrating innovation in competition law reasoning and enforcement methodology. Once it was concluded that the dominant design theory is the most applicable in digital markets, it was analyzed and applied comparatively to other theoretical alternatives.
Conclusions: the theory of dominant design emerges as an effective theoretical approach, considering the cyclical nature of innovation and its relationship with dominant architectures in digital markets. A proper application of competition law should focus on maintaining cycles of dominant architecture, allowing contestability and the emergence of new architectures without interfering with market dynamics. This approach is starting to gain recognition, as evidenced by the Cade's decision in 2020, highlighting the importance of considering the innovation process in dynamic markets and signaling a significant evolution in the application of competition law in relation to digital markets.
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