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A Rational Review of Platform Monopoly in the Era of Digital Economy(Special Issue, No.30, 2019 )

2019-06-04

By Xiong Hongru, Research Team on “Factors Leading to Platform Monopoly in the Era of Digital Economy and Countermeasures for Addressing Challenges”, Research Department of Innovation Development, DRC

Research Report, Special Issue, No.30, 2019 (Total 1658) 2019-4-26

Abstract: The platform economy has become the most typical and widely used new economic format with a growing influence on and deepening penetration into the traditional economy. Digital platform is featured by significant network externality, multiple attributes of users and asymmetric price structure. Platform competition would generally strive to draw on more attention from consumers and suppliers. It is highly dynamic, trans-boundary and data-driven by nature. As the rapid scale development and high market concentration of the platform economy could enhance efficiency, people are concerned about the fact that the digital oligarchy might hinder the healthy competition and infringe upon the interests of consumers. In spite of the high concerns raised by various countries, disputes over how to implement the regulation still remain unsolved. In the era of digital economy, platform monopoly is quite different from the traditional market monopoly, which is reasonable and natural, but also brings new risks. Regulatory authorities need to consider the objectives and approaches relating to anti-monopoly policies comprehensively from multiple perspectives and adhere to the principle of inclusiveness, prudence and fairness. It is not advisable for them either to adopt the laissez-faire attitude or take a “one-size-fits-all” approach. They need to take a proper stance to boost development while preventing risks.

Key words: digital economy, platform economy, platform competition, platform monopoly, regulation

 
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