Platform Gatekeeping in the Building-Materials Sector: White Paper Release

In this entry to the Sabin Center Climate Blog by authors Andy Fitch & Cynthia Hanawalt (Columbia University) introduce a new paper examining how increasing market consolidation in the building-materials sector could undermine the development and adoption of low-carbon construction technologies. The paper, Platform Gatekeeping in the Building-Materials Sector: Competition Law and the Pace of Low-Carbon Construction, identifies distribution as a critical bottleneck, with Home Depot and QXO emerging as increasingly dominant platforms capable of influencing which products reach the market and at what cost.

The authors highlight the potential of technologies such as cool roofs, high-efficiency insulation, cross-laminated timber and low-carbon gypsum to reduce emissions. However, these innovations often carry higher upfront costs, making them particularly vulnerable to anticompetitive price increases and restrictive distribution practices. Home Depot’s extensive acquisition strategy and QXO’s rapid expansion have created powerful distribution conglomerates that may favor established, carbon-intensive products, restrict access for emerging competitors and slow the adoption of greener alternatives.

The paper argues that competition policy and climate policy must work together to prevent these market dynamics from obstructing the energy transition. It identifies potential antitrust concerns involving serial acquisitions, platform self-preferencing, product bundling and vertical foreclosure, suggesting that existing enforcement frameworks offer opportunities to address these risks. The authors also emphasize that public procurement mandates, low-carbon rebates and tax incentives will be less effective without competitive markets that allow innovative technologies to scale and reach consumers.