Antitrust law
How regulators and courts assess exclusionary conduct by platform operators controlling essential digital infrastructure.
Regulators and courts balance market power, consumer harm, and innovation when evaluating exclusionary practices by gatekeeping platform operators who control core digital infrastructure.
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Published by Andrew Scott
July 18, 2025 - 3 min Read
When regulators investigate exclusionary conduct by dominant platform operators, they begin with a careful assessment of market power and the role the platform plays in everyday digital life. Courts look beyond single transactions to the broader ecosystem, examining whether the operator’s control of essential infrastructure forecloses rivals or dampens competitive incentives. The inquiry often involves proving that the platform holds a durable, endogenous advantage, such as network effects, data access, or interoperability requirements that raise rivals’ costs. If the architectural position creates barriers to entry or expansion for others, enforcement agencies and judges may deem the conduct exclusionary, triggering remedies designed to restore contestability and protect consumer welfare in the long run.
When regulators investigate exclusionary conduct by dominant platform operators, they begin with a careful assessment of market power and the role the platform plays in everyday digital life. Courts look beyond single transactions to the broader ecosystem, examining whether the operator’s control of essential infrastructure forecloses rivals or dampens competitive incentives. The inquiry often involves proving that the platform holds a durable, endogenous advantage, such as network effects, data access, or interoperability requirements that raise rivals’ costs. If the architectural position creates barriers to entry or expansion for others, enforcement agencies and judges may deem the conduct exclusionary, triggering remedies designed to restore contestability and protect consumer welfare in the long run.
A central issue is whether the platform operator possesses essential facilities—that is, infrastructure that rivals cannot replicate on reasonable terms and that is indispensable for competing products or services. When access to such facilities is denied, delayed, or priced to deter new entrants, regulators scrutinize the rationale and proportionality of the conduct. Courts consider the purpose behind the behavior, whether it is to punish competitors, extract supracompetitive profits, or secure data monopolies, and they assess the actual effect on competition. The assessment weighs both competitive harms and potential efficiencies, ensuring that any procompetitive justifications are balanced against the broader goal of preserving open markets for innovation.
A central issue is whether the platform operator possesses essential facilities—that is, infrastructure that rivals cannot replicate on reasonable terms and that is indispensable for competing products or services. When access to such facilities is denied, delayed, or priced to deter new entrants, regulators scrutinize the rationale and proportionality of the conduct. Courts consider the purpose behind the behavior, whether it is to punish competitors, extract supracompetitive profits, or secure data monopolies, and they assess the actual effect on competition. The assessment weighs both competitive harms and potential efficiencies, ensuring that any procompetitive justifications are balanced against the broader goal of preserving open markets for innovation.
How remedies align incentives for competition and innovation
Evaluations of exclusionary practices start with evidence of discrimination that disadvantages rivals in a meaningful way. Regulators explore whether the gatekeeper’s policies apply neutrally to all users or selectively to harm specific competitors, reducing marketplace dynamism. The analysis also covers contract terms, interoperability demands, and API access, looking for provisions that deter entry or limit the ability of third parties to compete on merit. When the gatekeeper’s conduct has the foreseeable effect of raising rivals’ costs while preserving incumbent profit streams, enforcement action becomes more likely. Courts then determine whether these effects constitute anti-competitive exclusion rather than ordinary competitive conduct.
Evaluations of exclusionary practices start with evidence of discrimination that disadvantages rivals in a meaningful way. Regulators explore whether the gatekeeper’s policies apply neutrally to all users or selectively to harm specific competitors, reducing marketplace dynamism. The analysis also covers contract terms, interoperability demands, and API access, looking for provisions that deter entry or limit the ability of third parties to compete on merit. When the gatekeeper’s conduct has the foreseeable effect of raising rivals’ costs while preserving incumbent profit streams, enforcement action becomes more likely. Courts then determine whether these effects constitute anti-competitive exclusion rather than ordinary competitive conduct.
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Beyond discrimination, regulators assess whether the platform uses its structural advantages to condition access on terms that are economically coercive. They examine licensing regimes, price flooring, and exclusive dealing arrangements that may effectively foreclose competing services. The legal framework requires showing that such terms are not only abusive in intent but also that they produce adverse market outcomes, such as diminished innovation or reduced consumer choices. Courts sometimes request economic analysis to quantify the impact and corroborate claims of exclusionary harm, ensuring that remedies target the underlying mechanism rather than merely punishing a successful business model.
Beyond discrimination, regulators assess whether the platform uses its structural advantages to condition access on terms that are economically coercive. They examine licensing regimes, price flooring, and exclusive dealing arrangements that may effectively foreclose competing services. The legal framework requires showing that such terms are not only abusive in intent but also that they produce adverse market outcomes, such as diminished innovation or reduced consumer choices. Courts sometimes request economic analysis to quantify the impact and corroborate claims of exclusionary harm, ensuring that remedies target the underlying mechanism rather than merely punishing a successful business model.
The role of data, interoperability, and interoperability standards
Remedies proposed by regulators aim to restore contestability without crippling legitimate platform efficiencies. Structural remedies may involve unbundling certain functionalities, mandating data interoperability, or granting rivals access to critical interfaces under neutral terms. Behavioral remedies focus on transparency, non-discrimination, and predictable access timelines. Both approaches seek to realign incentives so that platform operators cannot leverage their control to suppress viable competitors. Courts evaluate these measures for feasibility, enforceability, and durability, ensuring that the constraints are proportionate to the harms detected and adaptable to evolving digital markets. The overarching objective is to prevent the reemergence of exclusionary cycles.
Remedies proposed by regulators aim to restore contestability without crippling legitimate platform efficiencies. Structural remedies may involve unbundling certain functionalities, mandating data interoperability, or granting rivals access to critical interfaces under neutral terms. Behavioral remedies focus on transparency, non-discrimination, and predictable access timelines. Both approaches seek to realign incentives so that platform operators cannot leverage their control to suppress viable competitors. Courts evaluate these measures for feasibility, enforceability, and durability, ensuring that the constraints are proportionate to the harms detected and adaptable to evolving digital markets. The overarching objective is to prevent the reemergence of exclusionary cycles.
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Judicial treatment varies by jurisdiction but often converges on a shared emphasis: maintain market contestability and protect consumer welfare while preserving legitimate platform investments. In some systems, cases hinge on whether there is intent to harm competition; in others, the focus rests on actual market effects regardless of intent. Comparative approaches also examine due process safeguards for both platform operators and affected firms, ensuring that remedies are clear, measurable, and time-bound. Ultimately, the courts seek to deter soft-power abuses, such as subtle marginalization of rivals through algorithmic prioritization, while recognizing legitimate efficiency-driven strategies that support quality improvements for users.
Judicial treatment varies by jurisdiction but often converges on a shared emphasis: maintain market contestability and protect consumer welfare while preserving legitimate platform investments. In some systems, cases hinge on whether there is intent to harm competition; in others, the focus rests on actual market effects regardless of intent. Comparative approaches also examine due process safeguards for both platform operators and affected firms, ensuring that remedies are clear, measurable, and time-bound. Ultimately, the courts seek to deter soft-power abuses, such as subtle marginalization of rivals through algorithmic prioritization, while recognizing legitimate efficiency-driven strategies that support quality improvements for users.
Economic analysis and the burden of proof in exclusionary claims
Data access and portability are central to assessing exclusionary behavior when platforms depend on customer information to sustain dominance. Regulators scrutinize whether data withholding or onerous transfer requirements hamper rivals’ ability to compete on the merits. Interoperability standards—whether industry-developed or regulator-mandated—serve as common ground for ensuring that competing services can interconnect smoothly. Courts evaluate whether standardization imposes reasonable constraints on the gatekeeper’s architecture or whether it imposes undue burdens that could stifle innovation. In all, the objective remains to keep data-driven power from translating into inexhaustible market control.
Data access and portability are central to assessing exclusionary behavior when platforms depend on customer information to sustain dominance. Regulators scrutinize whether data withholding or onerous transfer requirements hamper rivals’ ability to compete on the merits. Interoperability standards—whether industry-developed or regulator-mandated—serve as common ground for ensuring that competing services can interconnect smoothly. Courts evaluate whether standardization imposes reasonable constraints on the gatekeeper’s architecture or whether it imposes undue burdens that could stifle innovation. In all, the objective remains to keep data-driven power from translating into inexhaustible market control.
Interoperability agreements and open interfaces are often the most practical levers to restore competition when a platform commands essential digital infrastructure. Regulators may require the operator to publish API specifications, maintain stable versions, and provide equitable pricing for access. Courts assess not only the letter of such mandates but also the adequacy of enforcement over time. They scrutinize whether access is truly neutral, whether performance guarantees exist, and whether meaningful alternatives remain available to users. Effective remedies, anchored in technical feasibility, help ensure that new entrants can compete without being compelled into unsustainable compromises.
Interoperability agreements and open interfaces are often the most practical levers to restore competition when a platform commands essential digital infrastructure. Regulators may require the operator to publish API specifications, maintain stable versions, and provide equitable pricing for access. Courts assess not only the letter of such mandates but also the adequacy of enforcement over time. They scrutinize whether access is truly neutral, whether performance guarantees exist, and whether meaningful alternatives remain available to users. Effective remedies, anchored in technical feasibility, help ensure that new entrants can compete without being compelled into unsustainable compromises.
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Practical guidance for platforms, rivals, and policymakers
Economic testimony frequently underpins the legal determination of exclusionary harm. Experts translate complex platform dynamics into measurable effects on prices, output, and innovation. Regulators compare counterfactual scenarios—what the market would look like absent the conduct—with observed realities to estimate welfare losses. Courts require robust, transparent methodology and resist speculative projections. The burden sometimes shifts to defendants to demonstrate that claimed harms do not arise or that any adverse effects are outweighed by efficiency gains. Conversely, plaintiffs must show a strong causal link between the conduct and the anticompetitive outcome, reinforcing the gravity of exclusionary strategies used by gatekeepers.
Economic testimony frequently underpins the legal determination of exclusionary harm. Experts translate complex platform dynamics into measurable effects on prices, output, and innovation. Regulators compare counterfactual scenarios—what the market would look like absent the conduct—with observed realities to estimate welfare losses. Courts require robust, transparent methodology and resist speculative projections. The burden sometimes shifts to defendants to demonstrate that claimed harms do not arise or that any adverse effects are outweighed by efficiency gains. Conversely, plaintiffs must show a strong causal link between the conduct and the anticompetitive outcome, reinforcing the gravity of exclusionary strategies used by gatekeepers.
To avoid overreach, regulators and courts demand temporally anchored remedies and sunset clauses where feasible. They consider dynamic effects, recognizing that short-term costs may be acceptable if long-term benefits include healthier competition and more user choices. Assessments also address the risk of retaliation, such as retaliatory deals or strategic bottlenecks that can re-entrench dominance after a remedy ends. A balanced approach emphasizes predictable regulatory horizons, evidence-based adjustments, and ongoing monitoring to ensure compliance without stifling legitimate growth.
To avoid overreach, regulators and courts demand temporally anchored remedies and sunset clauses where feasible. They consider dynamic effects, recognizing that short-term costs may be acceptable if long-term benefits include healthier competition and more user choices. Assessments also address the risk of retaliation, such as retaliatory deals or strategic bottlenecks that can re-entrench dominance after a remedy ends. A balanced approach emphasizes predictable regulatory horizons, evidence-based adjustments, and ongoing monitoring to ensure compliance without stifling legitimate growth.
For platform operators, the clear takeaway is the necessity of designing access policies that are predictable, non-discriminatory, and justified by legitimate business interests. Transparent data practices and open interfaces reduce the likelihood of accusations of exclusion and facilitate healthier competition. Rivals benefit from pro-competitive access terms, enabling experimentation and differentiated offerings that spur innovation. Policymakers gain from a framework that emphasizes objective impacts, measurable remedies, and adaptable standards aligned with technical progress. The goal is to foster a level playing field where platforms can compete on value rather than on controlling essential digital infrastructure.
For platform operators, the clear takeaway is the necessity of designing access policies that are predictable, non-discriminatory, and justified by legitimate business interests. Transparent data practices and open interfaces reduce the likelihood of accusations of exclusion and facilitate healthier competition. Rivals benefit from pro-competitive access terms, enabling experimentation and differentiated offerings that spur innovation. Policymakers gain from a framework that emphasizes objective impacts, measurable remedies, and adaptable standards aligned with technical progress. The goal is to foster a level playing field where platforms can compete on value rather than on controlling essential digital infrastructure.
Ongoing dialogues among regulators, courts, and industry participants help refine antitrust expectations in fast-evolving digital ecosystems. Jurisdictional approaches may diverge, yet the core principles—protect competition, safeguard consumer welfare, and encourage innovation—remain consistent. By grounding enforcement in rigorous economic analysis, clear legal standards, and practical remedies, the system can deter covert exclusionary tactics while preserving incentives for research, development, and improved services. The enduring aim is a digital economy where competition thrives, users benefit, and infrastructure remains accessible to a broad range of capable players.
Ongoing dialogues among regulators, courts, and industry participants help refine antitrust expectations in fast-evolving digital ecosystems. Jurisdictional approaches may diverge, yet the core principles—protect competition, safeguard consumer welfare, and encourage innovation—remain consistent. By grounding enforcement in rigorous economic analysis, clear legal standards, and practical remedies, the system can deter covert exclusionary tactics while preserving incentives for research, development, and improved services. The enduring aim is a digital economy where competition thrives, users benefit, and infrastructure remains accessible to a broad range of capable players.
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