The rapid expansion of digital marketplaces has fundamentally altered the structure of modern commerce. Online platforms today act not merely as intermediaries but as gatekeepers, shaping access, visibility, and competitive outcomes across sectors. This transformation has prompted regulators worldwide to re-examine traditional competition law principles and their application in digital markets. At the core of this regulatory shift lies the question of market power. Unlike conventional industries, digital markets are characterized by network effects, data concentration, and algorithm-driven visibility. These features can create high entry barriers, making it difficult for new competitors to challenge established platforms. The traditional tests of dominance—based primarily on market share—often fail to fully capture the influence exerted through control over data, digital infrastructure, and platform architecture.

The Way Forward

Another area of growing scrutiny is preferential treatment. Platforms that operate as both marketplace operators and sellers may design algorithms or ranking systems that favour their own products or affiliated entities. Such conduct raises concerns regarding self-preferencing and discriminatory practices, which may distort competition even in the absence of overt exclusionary agreements. Data access and interoperability have also emerged as critical legal questions. Control over vast datasets provides incumbents with significant competitive advantages. Regulators are increasingly considering whether access remedies, data portability mandates, or structural separations may be necessary to ensure a level playing field. However, these measures must be balanced carefully against innovation incentives and consumer welfare considerations.

The Indian Perspective

Indian competition law, like its global counterparts, is evolving to address these complexities. Investigations into digital commerce platforms reflect a broader policy debate: whether existing statutory frameworks are sufficiently flexible to regulate platform economies, or whether sector-specific ex ante regulation is required. Comparative developments in the European Union and other jurisdictions demonstrate a growing willingness to move beyond purely ex post enforcement mechanisms. Ultimately, the challenge lies in designing regulatory responses that preserve competition without stifling technological advancement. As digital markets continue to expand and integrate into everyday economic life, competition law will remain central to maintaining fairness, innovation, and consumer choice.