CONCENTRATION IN DIGITALIZED MARKETS: REGULATORY PRACTICE AND EXPERIENCE
Abstract
The article examines the nature and specifics of concentration in global digitalized markets. The aim of the article is to showcase the processes that have significant impact on an important field of digital technologies. The article describes the potential consequences for the development of such markets in the context of concentration of market power. While creating this paper there were utilized multiple research methods which include composition and decomposition, analysis and historical method. The topic of this paper is in time via various reasons: technology segment importance, globalization processes, market concentration pace within the largest niches of the digital or digitally-related markets. Especially, given the fact that Ukraine is quite digitally intensive country with own market and competition patterns within it. The focus shifted even more since the invasion of 2022, when digital sector showed the best results across all the industries due to its ability to relocate quickly without significant affection of the key business processes. The author provides statistics on the processes of concentration of market power in digitalized markets and analyzes the strategy of certain major market participants to maintain their dominant position. The international experience of state regulation of concentration of market power is considered, and the consequences of decisions of state regulators, historical events and recent decisions that will have significant consequences for the further development of the industry are analyzed. The author describes potential solutions that will ensure the compliance of Ukrainian state policy in the context of the growing influence of international corporations in industry markets under strong globalization processes. Main value delivered by the research paper is in experience analysis across developed markets with identification of the key best practices deployed. This allows us to develop a set of recommendations to foresee and assist future processes of market concentration within the Ukrainian economy to deliver further growth and recovery in given circumstances.
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