Digital Antitrust: Reimagining Competition Law for Platform Economies and AI-Driven Markets

Abstract

This study explores the dynamics of competition law within the context of platform-based economies and artificial intelligence (AI), using a case study of micro, small, and medium enterprises (MSMEs) in Bandung City. Employing a socio-legal qualitative approach and thematic analysis of field observations and in-depth interviews with business actors and legal experts, the research reveals that MSMEs’ reliance on digital platforms creates an imbalanced structural power relationship. Algorithmic control over visibility, pricing, and penalties restricts the economic autonomy of small-scale entrepreneurs, resulting in a new form of dominance not yet addressed by conventional antitrust frameworks. The study recommends digital legal reforms that include algorithmic transparency, system audits, and the active involvement of MSMEs in platform policy-making processes. These findings highlight the urgent need to redefine the concept of market dominance in the age of data and AI, as well as the importance of cross-sector collaboration in building a fair, competitive, and inclusive digital ecosystem.