The Challenges of Blockchain Technology to Antitrust Law

Abstract

This paper intends to describe in greater detail the challenges that blockchain presents for the implementation and enforcement of antitrust law against anticompetitive practices. The paper discusses how the decentralized and autonomous technology and structure of blockchains as well as the lack of its control by governments or any other central institutions will create challenges in terms of the detection of anticompetitive practices on blockchain in the first place, and then, imposing the relevant sanctions thereupon. In particular, the blockchain software triggers decisions and actions automatically (i.e. decisions and actions are managed by the neutral software), without interference of blockchain participants, making it impossible for the antitrust law violations to be attributed to an intention of a blockchain participant. This will force antitrust law enforcers to become more pro-active in their planning, especially when the competence of state courts is already difficult to assign to disputes with blockchains. Therefore, the implementation of self-regulation, such as “law is code”, by the market players will have an utmost importance, and eventually, the relevant antitrust regulations and standards will be implemented within the system itself to address the anticompetitive practices on an ex-ante basis.