STUDY OF BUSINESS COMPETITION LAW IN THE INCREASINGLY COMPLEX DIGITAL MARKET ERA

Abstract

The digital economy era has encouraged online business and purchasing, influencing the dynamics of business competition. Even though Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition applies, this regulation does not fully accommodate the impact of the digital economy. Therefore, this research examines changes in the legal paradigm of business competition in an increasingly complex digital market era. This research uses normative legal analysis methods. In adapting competitive analysis tools to digital markets, several vital characteristics are to consider, including network effects, cross-platform externalities, rapid changes in the competitive landscape, non-price competition, and broad geographic coverage. Efforts to improve business competition law in the digital market era must combine flexibility in regulation, cooperation between sector regulators, a deep understanding of the dynamics of digital market demand, and adaptation of methodology and assumptions in business competition analysis. Law Number 5 of 1999 needs to be adapted to the continuously developing digital market by improving merger control, creating clear guidelines, increasing digital expertise for KPPU officials, closer international cooperation, and using comprehensive market studies. This aims to maintain fair competition innovation and protect consumer interests in a dynamic global digital ecosystem.