Abstract
The digital transformation of media ecosystems, characterised by algorithmic curation, platform monopolies, and AI-generated content, poses unprecedented challenges to liberal democracies. This paper develops an updated ordoliberal framework to identify four systemic risks: (1) erosion of traditional media business models, (2) loss of consumer sovereignty in algorithm-driven environments, (3) market concentration among global tech platforms, and (4) geopolitical weaponisation of disinformation. Through the lens of Musgrave’s theory of merit goods, we argue that unregulated digital markets risk subverting media’s essential democratic functions as public informant and watchdog. Our policy framework proposes solutions at the European level, including structural separation of platform monopolies, AI transparency mandates and a truly unified internal market.