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Creating More Public Value in the EU Competition Law by Reaching a Higher Level of Prevention in the Particular Context of the Digital Markets

The problem-solving mechanism developed by Sparrow in the field of social regulation could also be implemented in competition law in order to prevent the recurrence of competition problems in a given industry. The aim of competition authorities (as a protection-type agency) is to create public value. This is measured in terms of their ability to solve social problems by preventing or controlling harms. In the case of competition authorities, public value is achieved by ensuring a competitive market environment through the curtailment of market power and the removal of barriers to entry. The public value of prevention is especially important when markets have a tendency to become concentrated. In order to achieve the maximum preventive effect, all prevention tools must be operated effectively. This includes imposing structural remedies or switching to ex-ante prevention (regulation) when ex-post enforcement proves ineffective.
concentration, deterrence, divestitures, ex-ante regulation, prevention