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Problems Caused by Platform Monopoly in the Development of China’s Digital Economy and Relevant Countermeasures (Special Issue, No.32, 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.32, 2019 (Total 1660) 2019-4-26

Abstract: Digital platform enterprises have rapidly emerged in large numbers in China in recent years. While improving economic efficiency and social welfare, they also bring with them quite a few risks. In addition, rising challenges caused by platform monopoly have induced governance issues in the field of new economy. In this regard, conventional anti-monopoly analysis tools and judgment standards need to be updated and guidelines on platform supervision should be further clarified. Moreover, some tangible problems remain to be addressed such as inappropriate measures of administrative intervention, improper and optional ways for law enforcement, weak emphasis laid on supervision efficiency and insufficient support for institutional mechanism. In face of the booming digital and platform economy, relevant authorities need to adhere to the supervision guidelines of inclusiveness, prudence, fairness, openness, transparency and flexibility in an orderly manner and improve the anti-monopoly regulation system with the following multi-pronged measures. First, anti-monopoly analysis tools and law enforcement guidelines need to be innovated. Second, the authorities need to cope with different problems with classified measures, implement policies in a targeted manner, focus on potentially harmful conducts, address typical cases on time and enhance deterrent force of anti-monopoly measures. Third, research on legislation and law revision needs to be promoted and improvement of legal systems needs to be accelerated. Fourth, related government departments need to improve the law enforcement capacity of anti-monopoly institutions. And fifth, efforts need to be made to enhance international exchanges and coordination of law enforcement on competitions in the field of digital economy.

Key words: digital economy, platform monopoly, supervision guidelines, countermeasures for governance

 
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