The orthodoxies of competition law and its remit, already under siege, have been further challenged by the health crisis. In particular, the traditional notion of consumer welfare was already being criticized as too price-focused, without taking proper account of other competition factors like innovation, quality, and long-term investment.
During the recovery, with even more reliance on “free” technology, plus new concerns around access to essential products and the impact on employment and other social goods, competition policy is tasked with more urgently addressing its perceived deficiencies in the face of attempts to take advantage of the crisis.
When businesses think about the competition rules, they will need to think more broadly, in a way that we haven’t seen before. Price may need to make more room for innovation, sustainability, the environment, employment, privacy and social and economic inequality which have become the focus of political agendas.
“The pandemic has catapulted the digital revolution into warp speed. Emerging from the crisis, there is new urgency and focus to address the market power of global tech platforms. The outcomes of this battle will have important ramifications for many other sectors.”
Fay Zhou
Partner, Beijing
“Navigating in a Covid era, consumer interests through a political lens and new competition policy and enforcement priorities will require companies to stay on top of fast-moving developments. They will need to be agile, politically savvy and engaged in their communities.”
Nicole Kar
UK Head of Competition, London
Other topics in our series
The sprint towards ever greater state interventionism
14 setembro 2020
State interventionism is on the rise globally, but what does this mean for companies, especially in the context of the recovery? We expect more foreign investment control and protectionism especially in the tech and healthcare sectors, companies delivering on governments’ sustainability agendas and authorities imposing more invasive commitments. Here’s why.
Competitor cooperation in times of crisis – A chance to reshape the rules?
15 setembro 2020
Throughout the health crisis, businesses have worked together to ensure uninterrupted supply of essentials – often supported by guidance from competition authorities. But as businesses seek to recover from the crisis and adapt to the altered outlook, what role should cooperation play? And what does that mean for the application of the competition rules?
Playing politics with distressed M&A
16 setembro 2020
The checks and balances of the merger control process are never more important than in times of crisis. But we are already seeing signs that crisis-driven M&A reviews will face intense political pressure. Meanwhile authorities have been bracing themselves for a surge in failing firm defence claims. Traditionally met with scepticism, will they gain traction through the Covid-19 lens?
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