Global Trade Update<\/a>, released on 8 July.<\/p>\nDigital platforms now dominate the global economy \u2014 reshaping trade, communication and everyday life. Seven of the world\u2019s 10 most valuable companies are now digital giants. These firms do not lead in just one area \u2014 they span the entire digital economy, from cloud computing and e-commerce to artificial intelligence and advertising.<\/p>\n
This dominance is reflected in growing market concentration. Between 2017 and 2025, the combined share of sales held by the top five digital multinational enterprises more than doubled from 21% to 48%. Their share of total assets also increased from 17% to 35% during the same period.<\/p>\n
The rapid rise of generative artificial intelligence (AI) adds to growing concerns over market power, where Big Tech companies such as Microsoft and Google dominate the value chain and consolidate their leading positions by partnering with start-ups like OpenAI.<\/p>\n
Consumers need digital markets that are open, fair and inclusive<\/p>\n
Generative AI requires massive computing power, chips, cloud services, talent and data \u2014 all controlled by tech giants and posing steep barriers to entry.<\/p>\n
Digital markets thrive on network effects and control over data, meaning the more users a platform has, the more attractive it becomes.<\/p>\n
This creates a cycle of growth that makes it hard for smaller rivals or new players to compete and gain traction. When there\u2019s less competition, consumers are likely to face higher prices, lower quality and weakened privacy protection.<\/p>\n
High market concentration also reinforces existing global divides, leaving much of the developing world further behind.<\/p>\n
Regulators have warned that these dynamics could stifle innovation, limit market access and entrench Big Tech\u2019s dominance in the next frontier of digital power.<\/p>\n
Regulators step in, but gaps remain<\/p>\n
Globally, governments are racing to rein in digital giants and restore fair competition through regulations.<\/p>\n
Since the European Union (EU) enacted the Digital Markets Act in 2022, aimed at preventing large companies from abusing their market power, 19 more countries have taken action with digital competition laws.<\/p>\n
For example, Australia proposed a sweeping new regime in late 2024. India\u2019s draft Digital Competition Act, released in 2024, mirrors the EU\u2019s gatekeeper approach.<\/p>\n
Japan has also introduced targeted laws to increase transparency and break dominance in mobile ecosystems.<\/p>\n
Moreover, South Africa amended its Competition Act to promote inclusion and tackle concentration in digital sectors including e-commerce, travel platforms and food delivery.<\/p>\n
Since 2020, the number of actions governments worldwide have taken to restore competition in digital markets has surged from 14 to 153 in 2024.<\/p>\n
But enforcement is uneven. Europe and Asia are leading the way, while Africa and Latin America lag due to capacity constraints and limited access to data.<\/p>\n
Way forward<\/p>\n
UN Trade and Development underscores that more robust, transparent and coordinated enforcement of competition law is key to building inclusive, competitive and development oriented digital ecosystems.<\/p>\n
For developing countries in particular, strong competition frameworks along with investment in infrastructure support digital industrialization, encourage innovation and ensure that the benefits from digitalization are more equitably shared.<\/p>\n
\u201cStronger enforcement of competition rules \u2014 paired with infrastructure investment, stronger regulatory systems, skills development and financing opportunities for startups in the digital economy \u2014 is essential to ensure the digital economy works for all, not just a few global tech giants,\u201d the report concludes.<\/p>\n","protected":false},"excerpt":{"rendered":"Stronger competition enforcement, along with more upskilling and better infrastructure and support for start-ups are vital to ensuring…\n","protected":false},"author":2,"featured_media":248978,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[51,2441,16,15],"class_list":{"0":"post-248977","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/248977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=248977"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/248977\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/248978"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=248977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=248977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=248977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}