[kictanet] Fwd: [Internet Policy] Restoring competition in "winner-took-all" digital platform markets

[Ali Hussein]

Barrack

Probably one of the most important reads this year. Thank you for sharing!

Regards

*Ali Hussein*


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On Thu, Jan 30, 2020 at 5:51 PM Barrack Otieno via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Listers,
>
> Might be of interest.
>
> Regards
>
>
>
> ---------- Forwarded message ---------
> From: Richard Hill via InternetPolicy <internetpolicy at elists.isoc.org>
> Date: Tue, 28 Jan 2020, 4:02 pm
> Subject: [Internet Policy] Restoring competition in "winner-took-all"
> digital platform markets
> To: <internetpolicy at elists.isoc.org>
>
>
> Here is a paper from UNCTAD on competition policy and digital platforms:
>
>   https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=2622
>
> I copy-paste the highlights below.
>
> Best,
> Richard
>
> ============
>
> Digital platforms provide a variety of services such as marketplaces,
> social
> networking, search engines and payment systems. Their business model relies
> on data and data monetization for growth. These are multi-sided,
> oligopolistic or monopolistic markets characterized by network effects,
> high
> economies of scale and scope, and increasing returns to scale, which
> together raise barriers for new entry.
>
> In digital markets, platforms compete for the market and not in the market.
> These features together with control over user data confer significant
> market power to incumbent platforms in their respective markets. This has
> raised concerns about competition and led the competition lawyers and
> economists reflect on ways to restore the lost competition in digital
> markets.
>
> This paper suggests adapting competition law tools and analysis to the
> realities of this new business model; reforming merger control regimes;
> focusing not only on free but also fair competition in digital markets;
> adopting regulatory measures such data openness and portability,
> interoperability between online platforms.
>
> The paper also questions the relevance of consumer welfare standard based
> on
> price effects and efficiency to the new business model of online platforms.
> It suggests adopting a broader framework including choice, quality,
> privacy,
> innovation, future competition and effective competition structure and
> competitive process in competition law enforcement.
>
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