How digital near monopolies impact consumer welfare?

This paper aims to analyze the impacts of near monopoly platforms on consumer welfare in Europe. An analysis of the actions taken by the European institutions, to mitigate the negative impacts on the consumer and to fill the gaps in the current digital laws is also made. Finally, alternatives for other stakeholders such as users and digital businesses are outlined to support new European regulations. On the one hand, a near monopoly situation allows for the centralization of services adapted to consumer preferences to satisfy their needs. This situation reduces information asymmetry and user search costs. Digital near monopolies will, with their surplus profitability, be able to invest in longer term research innovation projects. Considering that the payoff of an innovation is higher in a near monopoly situation, the prospect of increased profits will stimulate innovation because profits result from market power. On the other hand, digital platforms in a near monopoly situation will reduce privacy by collecting a significant amount of user data. The situation creates security concerns and a dependency of consumers on these platforms. Digital near monopoly, with the help of a "now-casting radar", will limit competitive threats, create a "kill zone" for small companies and startups and discourage competitors from entering the market and bringing new innovations. Finally, given their power, large user base and the amount of data collected, these platforms can harm consumers by abusing their dominant position. Following the impacts highlighted, this paper then analyzed what are the main current laws regarding digital near monopolies, and what are the impacts and limits regarding the negative aspects of these near monopolies. Given the shortcomings of the current legislation regarding the negative effects of digital near monopolies on consumers, the European institutions have decided to act. The European institutions have validated 4 laws, which will soon be in application, aiming at reforming the digital space. These laws will have as objectives to create a safer digital space, with more competitive and fairer markets favoring innovation. The European Union, by establishing a complete standard for the regulation of the digital space, erects a powerful symbol putting an end to the reign of "too big to care" near monopolies. In the final section, this document highlights, regarding the negative impacts of digital near monopoly, some non-legislative solutions, that can be put in place by consumers, businesses in general and near monopolies.