Digital Conglomerates in East Asia: Navigating Competition Policy Challenges

Competition increases productivity boosting innovation and economic growth. Competition fosters cost reductions, innovation and promotes productivity growth. This paper reviews global and regional trends on conglomeration in digital markets, especially through mergers and acquisitions. In recent years, the landscape of business consolidation has undergone a transformative shift, driven by the convergence of digital innovation and traditional commerce. This paper delves into the intriguing trends surrounding conglomeration in both digital and brick-and-mortar spheres, exploring their implications on a regional and global scale. With diverse models intertwining digital and traditional conglomerates, the strategies employed for consolidation have showcased remarkable diversity. However, at the forefront emerges the prominent strategy of conglomerate mergers, which amalgamate distinct business dimensions under a single corporate umbrella. Thus, this study investigates the readiness of competition authorities and sector-specific regulators to effectively address the intricate challenges posed by such mergers. In this context, policy reforms emerge as a focal point, aimed at bolstering regulatory frameworks to foster fair competition, innovation, and consumer protection in an era of rapid conglomerate digitalization.