The global economy today has become digital-centric, with virtually every type of stakeholder increasingly reliant on digital activities and platforms such as search engines, messenger services, e-commerce, social media, mobile operating systems and apps.
As such, having open and competitive digital markets is crucial. A more competitive digital sector is expected to increase productivity, innovation, consumer welfare and economic growth.
Governments around the world have taken various approaches in managing these digital platforms – which include social media and search engine platforms among others – to ensure fair competition, protect consumer welfare, and support domestic innovation. For example, policies that ensure digital platforms are open and interoperable can facilitate and preserve innovation through timely intervention of unfair practices.
While various stakeholders continue to contribute to developing and strengthening the digital economy, creating a policy framework that promotes open and competitive digital markets could facilitate innovation.
This paper presents the potential economic impact of such policies being considered or implemented in key East Asian markets – that is, to ensure innovation is maintained in Japan and South Korea. In essence, ensuring players do not engage mainly in consolidation or entrenching market power activities could enable more digital platforms to flourish.
