We invite you to read the opinion article published in El Mostrador newspaper about “The Importance of Regulating Digital Markets in Latin America” by Luis Villarroel, Director of NGO INNOVARTE.
Read here or at the EL MOSTRADOR website
Digital platforms have made immeasurable contributions to society. They are an active source of information, a link between people and businesses, and a robust market driving force. Over time, they will become increasingly relevant to the satisfaction of consumer needs and the public interest, so we must strive to ensure (or at least promote) that our jurisdictions have in place regulatory frameworks capable of effectively protecting both fundamental and collective rights, without hampering or unjustifiably restricting innovation, private initiative, and each of the objectives pursued by our respective free competition systems. The guarantee of the rule of law, the exemplary monitoring of the rules of state intervention in the economies, the understanding of the dynamics and verticals present in these markets and the legislative technique are key, and cannot be ignored in this exercise.
The guarantee of the rule of law, the careful monitoring of the rules of state intervention in the economy, the understanding of the dynamics and relations of these markets, and the legislative technique are key and cannot be ignored in this exercise.
In countries such as the European Union and the United States, there is a great deal of concern—and vigilance—regarding the role played by some economic stakeholders in digital markets that, although legitimately acquired by them, have today become a means through which it is technically possible to exercise control, under fair conditions, either over Internet content or over access to highly relevant commercialization channels.
The invitation, then, is to reflect on public policies to determine whether it is necessary to modify our legal frameworks in Latin America, and in Chile in particular, to prevent platforms from taking advantage of their dominant position—as hotspots of Internet access and use—to pressure other market players in an undesirable direction, since the protection of the latter is indispensable for a free, innovative and crowded ecosystem.
Regulatory proposals that are now the norm, such as the Digital Markets Act in the European Union, aim to curb the power of a few corporations and guarantee the rights of users in this environment, whether they are consumers, entrepreneurs, or data owners. In doing so, these jurisdictions seek to correct what they consider to be “market failures” resulting from, among other things, the asymmetry of information between the operators of technological platforms and the users of these services. In particular, to improve our legislation, we believe the European model of an explicit (ex-ante) list of prohibitions applicable to large platforms that meet certain objective requirements should be considered for adoption in Chile and Latin America.
In any case, these prohibitions should not apply across the board to all technological platforms but should address the need for companies of different sizes, whose impacts on society are smaller, to have different obligations. The definitions of concepts should be sufficient, not excessive, and the imposition of burdens should balance the interests of economic efficiency and never be disproportionate. This is the perspective adopted in what we believe to be the most responsible regulatory initiatives and should at least be evaluated by states in Latin America, meaning that effective regulation of digital markets has become imperative today.
The power of the few large platforms and anti-competitive practices threaten innovation, fair competition, and consumer protection. For this reason, and given the importance of knowing and discussing the experiences of other countries in the search for solutions to these threats to free competition and consumer protection, the webinar to be held this June 14 on “Competition Regulation and Digital Platforms in Europe and Latin America”, organized by NGO Innovarte and the Center for Regulation and Competition of the University of Chile, is particularly timely. This event will present the experiences of authorities and experts from Europe and Latin America, including Cani Fernandez, President of the National Commission of Markets and Competition; Alejandro Faya Rodriguez, Commissioner of the Federal Commission of Economic Competition of Mexico; Jaime Barahona, Minister of the Court of Defense of Free Competition; Francisca Levin, Head of the Mergers Division of the Fiscalía Nacional Económica of Chile (National Economic Prosecutor’s Office); Thomas Vinje, Partner and Global Chair Emeritus of the Competition Practice of Clifford Chance; Francisco Agüero, Director of the Center for Regulation and Competition of the University of Chile; and Michael Jacobs, Michael Jacobs Law & Consulting, among others.
Hopefully, this third conference will continue to open up perspectives and progress toward the establishment of clear rules and principles that promote transparency, neutrality, and the protection of users’ rights in digital environments, where international and regional cooperation will also play a crucial role, as the challenges are global and require joint solutions. With effective regulation, we can build fairer, more sustainable, and more beneficial digital markets for all.
To register for the seminar “Competition Regulation and Digital Platforms in Europe and Latin America”, please go to: https://bit.ly/14ju23
