This exciting feature is an example of Gojek's innovative approach and product development in the market. Launched initially as a platform connecting users with courier and ride services on two wheels, Gojek has since expanded its services to include GoSend, GoMart, GoFood, GoPlay and many more.

With remarkable growth and a more than US$10 billion valuation, Gojek has grown from a small start-up to a global tech company. Moreover, the economic impact of Gojek (now known as GoTo) is significant and is estimated to have contributed Rp 349 trillion ($24 billion) to Rp 428 trillion to Indonesia's gross domestic product in 2022. This contribution amounts to between 1.8 and 2.2 percent of the country's economic output.

Innovation can be found in other Indonesian digital enterprises. Ruangguru, for example, has transformed education by making learning more accessible and affordable. It has helped close the education gap, improve quality, create jobs for teachers and contribute to the sector's growth.

Similarly, Halodoc has improved accessibility to health care by providing online consultations, medication orders and access to medical information. It has improved access to health care, especially in distant places, and has reduced the burden on physical facilities, which was critical during the COVID-19 epidemic.

These positive results have encouraged the Communications and Information Ministry to launch the "1,000 Digital Start-ups" movement nationwide.

Like a double-edged sword, innovation in Indonesia's digital economy has brought several benefits to the market and raised concerns about potential challenges to future competition. As innovation continues to grow, there is a corresponding increase in the risk of diminished protection for health and a fair digital environment. This is because innovation's positive outcomes and benefits often overshadow the potential risks and challenges related to the lack of market protection.

In light of this issue, the potential risks in market protection arise due to the unique characteristics of the digital market, which set it apart from traditional markets. The digital market operates in a fast-paced and rapidly evolving environment, driven by technological advancements and changing consumer behavior.

Various factors, such as economies of scale and scope, network effects, switching costs and the huge amount of data, contribute to significant barriers to entry in the digital market. As a result, this leads to difficulties for new entrants in competing effectively, even if they offer superior products or services.

Furthermore, this results in a highly concentrated market prone to tipping, where competition revolves around market dominance among a few key players. Ultimately, this creates an uncompetitive market landscape with only a few dominant players.

In such cases, further problems may arise, first, the potential for abuse of the dominant position. When firms acquire a significant market share or dominance they have the flexibility to set prices and determine product quality without the risk of losing customers or being exposed to competition.

Hence, they may engage in anti-competitive practices to maintain or strengthen their position. These practices can include predatory pricing, exclusive contracts or leveraging market power to impede competition.

For instance, Google Indonesia holds a significant market share of 93 percent in the distribution market. Through Google Pay Billing (GPB), developers are charged a service fee of 15 to 30 percent on in-app purchases, while lower-rate payment methods are available. These practices have raised concerns regarding fair competition and the potential abuse of Google's dominant position.

Second, consumer choice may be limited when a few large players dominate a market, resulting in fewer options and less consumer freedom. This lack of competition can lead to higher prices, inferior products or services, and a narrower range of choices, leaving consumers with few alternatives and limiting their bargaining power. As James Kirkup said, "If you can name or even count all the major players in a market, there's something wrong with the market".

Third, it reduces innovation. Large firms with significant market power may have less incentive to innovate than smaller firms. Lack of competition experiences a decrease in innovation, which in turn hampers the advancement of technology and limits consumer benefits.

Despite those risks, the current competition regulations, especially those pertaining to abuse control, have faced criticism for their ex post facto approach and limited efficacy in dealing with infringements in the digital market.

This reactive approach is a challenge in rapidly evolving digital markets, as the enforcement of competition law often occurs long after any incident has occurred. Consequently, this delayed response may result in limited deterrence and the failure to provide timely protection to promote fair competition in the digital landscape.

A notable example is seen in the European Union, where the European Commission handled three significant cases involving Google: Google (Shopping), Google Search (AdSense) and Google (Android).

The Google (Shopping) investigation alone took an extensive 77 months (almost six and a half years) to reach a conclusion. In comparison, the other two cases, Google Search (AdSense) and Google (Android) were resolved relatively quickly, with durations of 32 and 25 months, respectively, from the initial statement of objections to the publication of the infringement decision.

These prolonged periods between the start of the activity and the prohibition decisions, sometimes spanning a decade, create difficulties in enforcing competition law, particularly in rapidly advancing technology-driven markets.

The problem lies in the lengthy time it takes to reach a verdict, as the services in question may have already been discontinued by that time. This is a significant concern in digital markets, as declaring restrictive practices illegal and imposing fines cannot reverse the effects on the market.

In response to the challenges, jurisdictions like the EU and Germany have strengthened their competition laws and encouraged better protection and fairer conditions. The EU has introduced the Digital Market Act (DMA) to regulate Big Tech companies acting as gatekeepers and prevent them from engaging in anti-competitive practices.

The DMA aims to create a fair and contestable market while reducing entry barriers. Similarly, Germany has amended its competition law to address the unique characteristics of the digital economy. The amendments include considering the impact of data collection, processing and usage on competition, as well as regulating merger control and the abuse of dominant positions in the digital market.

In conclusion, while innovation in the digital market has the potential to bring numerous benefits to consumer welfare, it also poses risks to legal protections and fair competition. As technology and innovation rapidly advance, the existing legal framework may need help to keep up with the evolving nature of the digital economy.

It is, therefore, essential to strike a balance between fostering innovation and ensuring adequate protection within the market.

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The writer is a lawyer and an LL.M. candidate in law and economics at Utrecht University, the Netherlands. The views in this article are his own.