ALGORITHMIC MECHANISMS OF UNFAIR COMPETITION IN DIGITAL MARKETS

Authors

  • Gennadi Androshchuk Candidate of Economic Sciences, Associate Professor, ChiefResearcher at the Research Instituteof Intellectual Property of the National Academy of Sciences of Ukraine Author ORCID Icon https://orcid.org/0000-0003-0781-9740
  • Vladislav Khvostenko Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Cybersecurity, National Technical University Kharkiv Polytechnic Institute, Ukraine Author ORCID Icon https://orcid.org/0000-0002-6436-4159

DOI:

https://doi.org/10.69635/mssl.2026.2.1.33

Keywords:

Digital Markets, Unfair Competition, Algorithmic Market Power, Digital Platforms, Competition Law, Ex Ante Regulation, Algorithmic Audit, Network Effects, Platform Governance, Regulatory Model

Abstract

The article examines the transformation of unfair competition under conditions of digitalization and the growing dominance of platform-based business models. It argues that traditional anti-competitive practices increasingly acquire an algorithmic nature and are implemented through ranking systems, recommendation mechanisms, automated pricing tools, and large-scale data processing. The study identifies key algorithmic mechanisms of competitive distortion, including self-preferencing, visibility manipulation, algorithmic coordination, data opacity, interoperability restrictions, and the reinforcement of market power through network effects. It demonstrates that the interaction between data, algorithms, and platform infrastructure produces a new configuration of digital market power that challenges conventional competition law doctrines.

The paper develops an integrated economic and legal model of regulatory response that combines ex post antitrust enforcement with ex ante preventive obligations. The proposed model includes algorithmic risk detection, legal qualification of conduct, proportional remedial measures (transparency requirements, algorithmic audits, interoperability duties), and compliance monitoring. Particular attention is paid to the evidentiary challenges associated with algorithmic opacity and the need for adapted standards of digital proof. The scientific novelty of the research lies in the conceptualization of a systemic framework linking algorithmic mechanisms, digital market structures, regulatory instruments, and digital evidence in the context of contemporary antitrust control.

References

Bodenhausen, G. (2018). Paris Convention for the protection of industrial property: Commentary (G. O. Androschuk, Trans., Preface & Sci. ed.). Parliamentary Publishing House.

Androschuk, G. O., & Shklyar, S. V. (2012). Competition law: Protection against unfair competition. Justinian.

Vinnyk, O. M. (2021). The law of the digital economy. Research Institute of Private Law and Entrepreneurship named after Academician F. H. Burchak of the National Academy of Law Sciences of Ukraine. https://t.ly/osxVj

European Commission. (n.d.). The Digital Markets Act. https://digital-markets-act.ec.europa.eu/index_en

Polyukhovich, V. (2024). Protection of economic competition in digital markets in Ukraine. University Scientific Notes, 5(101), 17–30. https://doi.org/10.37491/UNZ.101.2

Trajcheva, S. (n.d.). What is SEO spam and how does it impact your site?

Winston, A. R. (n.d.). 10 SEO spam types & how to avoid: Personal injury lawyers.

BrightLocal. (2023). Local consumer review survey 2023. https://www.brightlocal.com/research/local-consumer-review-survey-2023/

Center for Digital Society. (n.d.). Fake reviews: A growing threat to trust in the digital marketplace.

European Commission. (2023, September 6). Commission designates six gatekeepers under the Digital Markets Act. https://digital-markets-act.ec.europa.eu/commission-designates-six-gatekeepers-under-digital-markets-act-2023-09-06_en

European Commission. (n.d.). Commission fines Google €4.34 billion for illegal practices regarding Android mobile devices to strengthen dominance of Google’s search engine. https://ec.europa.eu/newsroom/comp/items/631884/

Lee, S. (n.d.). Algorithmic collusion in antitrust.

Giacalone, M. (n.d.). Algorithmic collusion: Corporate accountability and the application of Art. 101 TFEU. European Papers.

Androschuk, G. O. (2023). Artificial intelligence and intellectual property: Problems of regulation. Research Institute of Intellectual Property of the National Academy of Sciences of Ukraine; Interservice. https://ekmair.ukma.edu.ua/server/api/core/bitstreams/0a3ae7df-6993-490d-9eae-d5a6d1cab8d1/content

Law of Ukraine No. 3321–IX, On digital content and digital services (2023, August 10). Verkhovna Rada of Ukraine. Legislation of Ukraine. https://t.ly/o__DJ

Androschuk, G. O. (Ed.). (2025). Intellectual property in the digital economy: Problems of theory and practice. Interservice. https://drive.google.com/file/d/16xDa1LRj52vOFVJv6oYVaIptpNtyvDoF/view

Butnik-Siversky, O. B. (2023, March 23–24). Digital platforms on the path to digitalization of the intellectual property economy. In Improving legislation and the mechanism for implementing the protection of intellectual property rights in the conditions of post-war reconstruction of Ukraine (Section 6, pp. 29–32). Collection of scientific papers based on the materials of the V International Scientific and Practical Internet Conference, Kyiv, Ukraine. https://dspace.nuft.edu.ua/items/da76854c-f835-4922-af60-0e94318e03aa

Downloads

Views: 52

  |  

Downloads: 29

Published

2026-03-30

Issue

Section

Economic Models and Virtual Markets

How to Cite

Gennadi Androshchuk, & Vladislav Khvostenko. (2026). ALGORITHMIC MECHANISMS OF UNFAIR COMPETITION IN DIGITAL MARKETS. Metaverse Science, Society and Law, 2(1). https://doi.org/10.69635/mssl.2026.2.1.33

Similar Articles

1-10 of 24

You may also start an advanced similarity search for this article.