COMPETITION IN DIGITAL ECONOMY: THE STATE OF MERGER CONTROL ON CONSUMER TRANSPORTATION IN ASEAN

Abstract

Digital economy with advanced innovative technology has altered the business pattern and the consumer market by revolutionising the methods to sell and purchase products, goods or services. Digital technology has significantly disrupted the regulatory pattern and has altered the consumer transportation market pattern, safety, service as well as the price determination methods. Digital market in this context primarily comprised of platform-based business model, multisided markets network effects and economies of scale. This digital era has rendered competition issues more complex and impacted both positively and negatively the old economy pattern, traditional business setting and the related consumer welfare. The paper examines the scope and efficiency of merger control regime under the competition law and policy within the Competition Act 2010, Malaysia; Law Number 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business, Indonesia and Trade Competition Act B.E. 2560, 2017, Thailand. The paper reviews the state merger control with reference to Uber-Grab merger experience in South East Asia (SEA). The paper examines generally the impact and challenges of merger in digital economy on competition law and policy, and specifically with reference to Uber-Grab merger case with respect to its algorithmic pricing, collusion and disruptive innovation. Hence, paper proposes appropriate competitive regulatory principle and policy specifically with respect merger as basic requirement besides other regulatory tools to control anti-competitive merger to promote competition and safe-guard the consumer welfare in E-hailing industry in ASEAN with specific reference to Malaysia, Indonesia and Thailand