Enforcing Competition Law in the Digital Era: Addressing Algorithmic Opacity and Market Power

Abstract

This research examines the role of algorithms in determining competition in digital markets. It concentrates on the effects of algorithmic systems on the setting of prices, ranking of search engine results, allocation of resources, and consumer behavior. It examines the issues affecting digital competition due to the lack of transparency. Algorithmic systems can facilitate coordination among firms, this may include implicit collusion, often without leaving any direct evidence, which complicates regulatory oversight. Additionally, these systems are complex, constantly evolving and protected by legal mechanisms such as intellectual property rights. Egypt provides a compelling case stud as regulators noticed that the Egyptian Competition Authority faces major challenges. These include a weak mandate, lack of technical expertise, and an inappropriate legal system. The research examines how the EU and UK have addressed the challenges of algorithmic systems. It then seeks to draw a proposal for Egypt. It is believed that by adopting the proposed measures, Egypt can improve regulatory effectiveness in digital markets, reduce the risks of anti-competitive behavior, and ensure fair competition for both firms and consumers This can be achieved without undermining the right to confidentiality of business.