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Disruptive innovations are new products, services,
manufacturing processes, and/ or business models
that drastically alter existingmarkets. They pose unique
challenges to competition authorities – on one hand, they
tend to spur greater static and dynamic competition in
markets, but on the other theymay raise public concerns
in areas such as employment, consumer protection,
safety, and health. Because of their novelty, they may
not be sufficiently regulated by existing regulations. As
such, Governmental and Legislative Entities (“GLEs”)
may face pressure from businesses and consumers to
regulate, or even ban them altogether. There may also
be instances where disruptive firms begin operations
without complying with existing regulations, causing
GLEs to react by enforcing existing regulations.
To explore the implications of disruptive innovations, and
in conjunctionwith the ICN 2016 Annual Conference, CCS
undertookaspecial project on “Government Advocacyand
Disruptive Innovations”. Survey responses from 44 ICN
member agencies (“RespondingMembers”)werecollected
and analysed. The findings highlighted a key concern
of Responding Members – that regulatory response to
disruptive innovations in their respective economies
could prevent disruptive firms fromentering themarket,
hinder their ability to compete with market incumbents,
and consequently limit market developments.
The findings highlighted a key
concern of Responding Members
– that regulatory response to
disruptive innovations in their
respective economies could
prevent disruptive firms from
enteringthemarket, hinder their
ability to compete with market
incumbents, and consequently
limit market developments.