The dissertation is devoted to a comprehensive analysis of the transformation of competitive relations under the influence of economic digitalization. It examines key changes in both global and national contexts, particularly in Ukraine's economy. The study identifies chain effects whereby one digital trend provokes the emergence of another, altering the structure of the market environment. It outlines the challenges and opportunities for competition in the context of the rapid penetration of digital technologies.
Digitalization, based on the use of network technologies, is a leading trend in the global economy, transforming not only technological processes but also the very nature of competition. Digital platforms, as key drivers of this transformation, facilitate the concentration of market power through economies of scale, network effects, and the accumulation of user data. These data are used both to optimize the platforms’ operations and for commercialization. The active use of complex algorithms in information ranking can undermine traditional market self-regulation mechanisms.
The more users a platform has, the greater its value becomes, leading to the formation of monopolistic structures. At the same time, users "pay" with their personal data in exchange for conditionally free access to digital goods and services. Due to the digital nature of products and their easy replicability, modern companies can reach millions of users within hours—a dramatic shift compared to the previous century.
Traditional tools for analyzing competition often prove ineffective for digital markets. There is a need to introduce new methodological approaches that take into account economic, social, and informational aspects. In particular, it is necessary to assess the risks of market concentration, considering both vertical and horizontal integration by digital giants.
Special attention is paid to consumer rights protection. Freedom of choice, protection of personal data, and resistance to platform manipulation have become crucial aspects of everyday life amid the pervasive spread of digital technologies. The study substantiates the need for new models of digital market regulation, combining legal and technological approaches to ensure control over private data.
The phenomenon of network effects is thoroughly analyzed, whereby the value of a product increases with the number of users. Simultaneously, companies actively create switching barriers to retain users within their ecosystems, which increases the risks of monopolization.
New regulatory mechanisms are proposed to curb the abuse of market power, along with the potential for situational cooperation with tech companies to bridge the technological gap in antitrust policy—an effort complicated by the extraterritorial nature of digital actors.
The dissertation also explores the specific features of digital transformation in Ukraine. It reveals asymmetry in the digitalization of economic sectors, highlighting the need to create favorable conditions for fostering digital changes. The study examines instances of external interference in vulnerable areas, which have led to significant economic losses.
Finally, the work discusses ways to lower market entry barriers and improve the competition regulation system—particularly through simplified access for startups, reduced administrative obstacles, and strengthened oversight of digital platforms. The author offers recommendations for regulators and businesses to ensure effective competition in the digital economy.
