Assistant Attorney General Warns of Monopolization Risk in Digital Markets

Assistant Attorney General of the DOJ Antitrust Division Jonathan Kanter warned that the digital platform space, as it currently stands, is especially susceptible to monopolies and identified strategies for curbing the expansion of would-be monopolies.

In remarks at Fordham Competition Law Institute's Annual Conference on International Antitrust Law and Policy, Mr. Kanter said that the digital economy has "enabled monopoly power of a nature and degree not seen in a century." He cautioned that without proper competition, consumers will be subject to higher levels of exploitation, with little incentive for companies to act responsibly. He said that the DOJ identified instances where already dominant digital asset companies use exclusionary tactics to "deepen the moat around a digital castle."

Mr. Kanter said that this issue has global impact, and therefore, a coordinated global response is required to combat the problem. In order to identify a potential monopoly, Mr. Kanter said that the DOJ must (i) evaluate the company's conduct as a whole and what strategies it uses to maintain a monopoly, (ii) expand its focus from prior bad acts to contemporary misconduct, (iii) continue to identify and block mergers that "tend to create a monopoly" and (iv) implement effective remedies that promote competition and blocks anticompetitive tactics.