By Gunn Jiravuttipong, Researcher at Thailand Development Research Institute

What Are Digital Competition Regulations?

Digital competition regulations are a response to the unique challenges posed by digital markets—ecosystems shaped by network effects, data-driven business strategies and zero-price business models, and platform market power. Unlike traditional competition law, categorised as an ex-post approach, competition laws, where competition authorities investigate and act when anti-competitive behaviour occurs, Digital competition regulations follow an ex-ante approach. This is similar to sectoral regulation, providing rules and obligations for certain firms to prevent anti-competitive practices with a compliance monitoring mechanism.

The decision to adopt digital competition regulations has been widely discussed in recent years, and we are starting to see how countries are making these choices. The EU’s Digital Market Act, which came into force in 2023, is built upon European case law and experience in digital markets, targeting gatekeeper platforms with obligations to ensure fairness and contestability. Since enforcement began, the DMA has already prompted changes in the practices and business models of major platforms like Google and Apple. Meanwhile, the UK’s Digital Markets, Competition, and Consumer (DMCC) Bill, which was passed in 2024, proposes a participatory approach, with the competition agency tailoring specific “conduct requirements and pro-competition interventions” in consultation with platforms. In the Asia-Pacific, countries like Japan have passed the Act on Promotion of Competition for Specified Smartphone Software, focusing on a narrow scope of mobile ecosystems such as operating systems (OS) and app stores. Australia put forth a proposal for a new digital competition regime in December 2024 and a public consultation is underway.

However, developments are not smooth and linear. For example, South Korea has had a roller coaster experience, with the government proposing new law that received pushback from stakeholders, leading to the abandonment of digital competition regulation and turning back to revise traditional competition law. Similarly, India produced a report, draft legislation, and public consultation. However, recent reports seem to suggest that the legislative process is currently paused.

ASEAN: A Unique Terrain for Digital Competition Regulation

ASEAN countries present another unique digital landscape in terms of economic development, regulatory capacity, and competition law maturity. This diversity may shape how digital competition regulations are deliberated across the region. Recent development include the following:

1. Thailand has announced plans for a Platform Economy Act. An Impact assessment research is underway to analyse possible impacts of the regulation and gather feedback from stakeholders.
2. Similarly, Indonesia has expressed interest in using DMA as a reference point to develop its platform governance, with the government recognising the differences between the Indonesian and EU context in competition policy. Moreover, digital businesses are recommend to can refer to the EU’s  DMA as a possible navigation tool when conducting business in Indonesia.
3. The head of the competition agency in the Philippines has said that it has not considered this type of regulation. Other jurisdictions are also not clear on the direction of their plans. 
4. Singapore, home to many global and regional technology companies, stands out for its proactive and collaborative competition agency approach towards the digital sector. The Competition and Consumer Protection Commission (CCCS) have issued many guidelines and public consultations regarding digital competition and have also scaled up agency capacity by establishing the Data and Digital Division overseeing digital market and data sciences. Moreover, Singapore is also emerging as an influential architect of digital trade agreements. For example, Singapore has signed the Digital Economy Agreement (DEA) with Australia, the UK and the EU. 

The ASEAN region presents unique regulatory challenges due to its diverse economic development levels, varying digital adoption rates and distinct market dynamics. These characteristics add another layer of complexity to identifying and adapting appropriate regulatory and enforcement options. At a high level, there is ongoing debate about whether to follow the EU approach. While competition laws in the region are relatively young and many agencies operate with limited resources, several have begun addressing digital platform cases. Despite these challenges, agencies must navigate not only complex technical issues but also significant resource constraints. Some policy makers may view new regulations as complementary to existing competition law, arguing they could streamline enforcement in digital cases. However, there are also concerns about the risk of expansive discretion and lack of procedural safeguards. Additionally, ASEAN’s fragmented regulatory landscape could make regulations harder to understand, creating compliance challenges for relevant stakeholders.

The unique characteristics of the digital ecosystem in ASEAN also require careful consideration, as regional platforms and services differ substantially from those in US and EU markets. This diversity necessitates in-depth studies to understand the current market and competition landscape, the concerns and challenges specific to ASEAN’s digital economy. While insights can be drawn from expert reports and analyses conducted in other jurisdictions, ASEAN policymakers face a complex balancing act: identifying priorities of concerns and services that require closer scrutiny and potential regulation.

Current ASEAN’s initiatives, such as the ASEAN Regional Guidelines on Competition Policy, reflect a preference for soft-law approaches that can accommodate its member states. However, the recent ASEAN Digital Economy Framework Agreement (DEFA) signals an interest in  more digital competition regulation, with competition policy is one of the core principles envisioned in DEFA for fair and competitive digital markets. Notably, a recent study on the ASEAN DEFA framework identifies “internalization of competition policy in the digital economy” and possible “enactment of laws to ensure open digital market access for large platform players.” As DEFA negotiations continue, the details of consensus and mechanisms remain to be determined.

Moving Forward: Strategic Recommendations for ASEAN Policymakers