Potential competition is an economic force not yet shaping competition in a given market, but which has the potential to do so in the foreseeable future. It has recently moved up the competition policy enforcement agenda due to the growing interest in innovation-related theories of competitive harm and the rapid development of digital technologies and services. In this article, we briefly review, from an economic perspective, the current theories of harm relating to potential competition, the industries and market situations where such competition is relevant, as well as a few considerations regarding its assessment.

Find our full paper, published by Competition Policy International, here.