Competition regulation in digital markets: 5 Themes in 5 Minutes

In 2025, enforcers will have more tools at their disposal than ever before. But “with great power comes great responsibility”, meaning careful selection and prioritisation will be critical. The stakes are high as agencies walk the tightrope between rigorous enforcement and chilling “overregulation”. 

In our latest edition of 5 Themes in 5 Minutes, we look across the globe to pick out five key trends we see as shaping competition enforcement in digital markets in the year ahead.

01| All eyes on AI

As competition regulators worldwide grapple with the rapid evolution of AI technologies, the history of perceived “underenforcement” looms large and regulators are collectively hoping to prevent - rather than later need to cure - potential competition concerns. Regulators in Europe along with bodies such as the G7 Committee of Competition Authorities and policymakers have all published various papers focusing on potential barriers to entry within the generative AI sector, access to large datasets, specialised chips, and skilled labour. 

In a symbolically important move, major regulators, including the FTC, DOJ, EC, and CMA issued a joint statement on AI competition, underscoring the need for coordinated international efforts. As AI continues to transform industries, monitoring how these enforcement trends develop will be crucial in 2025.

02| Platform regulation in its infancy

In 2024, digital market regulation evolved rapidly across the globe, particularly in the EU and China, with the Digital Markets Act becoming fully applicable, and China’s continued focus on increasing interoperability between key apps and platforms.

The UK and Japan have legislated similar digital markets regulations this year, while countries like Australia, Kenya, South Korea, India, and Brazil are also contemplating introducing new laws. As these regimes multiply, so too does businesses’ compliance burden. Careful navigation of  these new regulatory landscapes, by companies and regulators alike, will be crucial as platform regulation matures.

03| The merger control flex

The debate over merger control in tech markets was reignited in 2024, driven by a significant court ruling in the EU, coming at the same time as a desire to review increasingly prevalent strategic partnerships between generative AI developers and tech incumbents (many of which do not look like traditional mergers or acquisitions). 

The EU, with its rigid jurisdictional rules, faces challenges after the Illumina/Grail ruling, placing greater onus on national competition authorities to independently review transactions that fall below merger control filing thresholds, by using their residual call-in powers. Outside the EU, the UK has already exercised its more flexible jurisdictional rules to review several AI partnerships, with the CMA’s jurisdictional test expected to become even more flexible with the introduction of a new ‘hybrid’ threshold under the DMCC Act. In the US, the FTC has also probed AI investments, and China's SAMR continues to monitor the AI space closely. 

Competition authorities (and regulators) are adapting to the evolving digital M&A landscape. Digital companies can therefore expect close scrutiny of any acquisitions or partnerships.

04| Public and private enforcement

Notwithstanding the advent of new digital markets regimes, the EU, UK, and US authorities still remain active in their antitrust enforcement efforts, with landmark rulings and proceedings against major tech companies. 

Private redress claims are also on the rise, with the US model increasingly influencing other jurisdictions. The UK's opt-out collective proceedings have seen a surge in relation to alleged breaches of competition law, particularly against large tech companies. Meanwhile, the EU's Representative Actions Directive allows for varied collective enforcement approaches across member states. 

While digital platforms face new ex ante regulations, traditional antitrust enforcement and private litigation will continue to play pivotal roles, challenging companies on multiple fronts.

05| Consumer protection in the spotlight

As digital markets evolve, consumer protection has also emerged as a crucial area of focus for regulators. Authorities are increasingly scrutinising online choice architecture, including default settings, bundled consents, and dark patterns, to ensure compliance with consumer laws. 

This has significant implications for digital platforms, with dark patterns specifically called out in the EU’s guidance on the Unfair Commercial Practices Directive and Digital Service Act. Consumer law is also poised to play a significant role in the global development of AI technologies: the FTC and CMA are actively focused on deceptive practices in AI, while ongoing consumer reforms in Australia are also considering the introduction of AI-related consumer protections. 

Consumer protection now extends beyond traditional retailers, encompassing all tech companies interfacing with consumers, aiming to ensure fair and transparent conduct throughout digital markets.

Read more in our Antitrust and Foreign Investment team's in-depth briefing: Competition regulation in digital markets: 5 Themes in 5 Minutes