Since the 1980s the promotion of competition and the attendant concept of efficiency have been central tenets of public policy. These concepts have been applied increasingly with little understanding of their significance and meaning. This paper addresses the implications for competition policy of the transformation to a Digital Economy. The transformation should be envisioned as a the consequence of a General Purpose Technology of ICT (rather than as a subset of transactions that take place within the economy as in Government strategy). The continuing change to the Digital Economy necessitates a reframing of the policy prescription, especially on policy to focus on facilitating markets as mediums for information exchange rather than marginal cost pricing outcomes.