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The Role of Innovation in
Competition Enforcement
Background note by the Secretariat
The background note
2
• Theoretical discussion in June
• The legal framework
• Incentives-based approach
• Impact-based approach
• Inverse relationship
• Challenges and conclusions
Three scenarios
3
Incentives
• Static
• Well-defined
markets
• Traditional
theories of
harm
• Focus on
incentives
Inverse
relationship
• Countervailing
factors
• Efficiency
claims
• Justifications
• Limited
dynamic
considerations
Impact
• Dynamic
• Innovation
markets (or
spaces)
• New theories
of harm
• Focus on
capabilities
Main challenges
4
1. Uncertainty
2. Measuring innovation appropriately
3. Properly capturing competitive dynamics
4. Meeting legal test
5. Evidence

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Competition and Innovation - The Role of Innovation in Enforcement Cases – OECD – December 2023 OECD discussion

  • 1. The Role of Innovation in Competition Enforcement Background note by the Secretariat
  • 2. The background note 2 • Theoretical discussion in June • The legal framework • Incentives-based approach • Impact-based approach • Inverse relationship • Challenges and conclusions
  • 3. Three scenarios 3 Incentives • Static • Well-defined markets • Traditional theories of harm • Focus on incentives Inverse relationship • Countervailing factors • Efficiency claims • Justifications • Limited dynamic considerations Impact • Dynamic • Innovation markets (or spaces) • New theories of harm • Focus on capabilities
  • 4. Main challenges 4 1. Uncertainty 2. Measuring innovation appropriately 3. Properly capturing competitive dynamics 4. Meeting legal test 5. Evidence