23/04/2025

Framework for Market Regulation in Digital Markets

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The world is becoming increasingly digital, bringing about a new market dynamic. This leads to new challenges for users and regulation. Therefore, the government has the need to monitor the functioning of digital markets and the dynamics and developments that occur there, even when these markets are relatively new. For this reason, the Ministry of Economic Affairs (EZ) has commissioned Dialogic, in collaboration with e-Conomics, to develop a market structuring framework for digital markets. Sometimes, relatively young digital markets operate within a framework where network effects, data advantages, and economies of scale come together. The developed framework aims to provide policymakers with tools to assess whether digital markets are functioning well and to identify risks such as power concentration or barriers to entry in a timely manner. **Objective of the framework** The market structuring framework is intended as a tool for policymakers to quickly understand how a digital market operates and to identify potential issues for targeted interventions. The framework is not meant to fully understand market transactions, but rather to serve as a quick initial scan to detect possible problems that may require deeper analysis. This is useful because digital markets can evolve rapidly, and competitive relationships in these markets can change quickly. **Structure of the framework** The framework is designed as a decision tree that enables policymakers to analyze the market step by step from a concern, complaint, or question about a digital market. It examines possible limitations in entry, choice, and switching options. The following themes are addressed: - Self-preferencing (vertical integration) - Lack of modularity in horizontal integration (bundling/tying) - Data-related issues (lock-ins/exclusivity) - Other issues (FBA, MFN, predatory pricing, margin erosion, etc.) Our report explains how the decision tree can be navigated step by step and why these themes are important for the functioning of digital markets. Additionally, the framework has been tested with various stakeholders from academia, policy, supervision, and the business sector. The research was presented to the House of Representatives on 15th April 2025. Read the relevant Chamber Letter, Decision Note, and research report [here](https://www.rijksoverheid.nl/documenten/kamerstukken/2025/04/16/kamerbrief-oplevering-marktordeningskader-digitale-markten).