The rise of the so-called “platforms” is leading to a new wave of regulation. This regulation overlaps with antitrust law in several respects, but it also introduces novel concepts. What is a platform? How does one define a “gatekeeper” role? Once defined, what specific rules should be imposed on platforms or gatekeepers, and why? How should these rules interact with those already in place under existing antitrust legislation?
Policymakers and legislators around the world are already proposing regulations. In Europe, the EU Parliament recently passed the Digital Markets Act, in the U.K., draft legislation is before the U.K. Parliament and in the U.S., several bills have been introduced in the House of Representatives and one is waiting to be voted in the Senate.
Change is afoot, and platforms are at the locus of the debate. These articles from our second issue of the TechREG Chronicle address the proposed regulation of platforms in various jurisdictions providing a vital contribution to this ongoing debate.
The EU’s Proposal for a Digital Markets Act – an Ex Ante Landmark
By Prabhat Agarwal (European Commission, DG CNECT)
The Digital Markets Act (DMA) will likely become a landmark in the regulation of digital markets. This article explores three elements the make the DMA a distinctive instrument: 1) the DMA’s ambitious design vis-à-vis other regulatory tools, 2) the way in which the DMA tackles structural issues typically found in digital markets, and 3) the DMA’s ability to regulate these markets by going beyond precedents.
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The Prohibition of Price Parity Clauses and The Digital Markets Act
By Martin Peitz (University of Mannheim)
Platforms have imposed price parity clauses on sellers, which restrict how sellers can set retail prices. These clauses have been found to be anti-competitive in a number of recent abuse cases in and outside Europe. The proposed DMA prohibits the use of such price parity clauses for gatekeeper platforms. This article explores the economic rationale of such a prohibition and points to possible responses by gatekeeper platforms.
Regulating Digital Platforms: Business Models, Technology Architectures, and Governance Rules
By Panos Constantinides (Alliance Manchester Business School)
The DMA focuses on the market power of digital platforms by defining a set of criteria for qualifying such platforms as so-called “gatekeepers.” For some analysts and commentators such gatekeeping is reminiscent of the gatekeeping exercised by more traditional utility infrastructures and that, we should, therefore apply similar policies to regulate digital platforms.
The Birth of Platform Neo-Regulation in the UK
By Martin Kretschmer and Philip Schlesinger (University of Glasgow)
Brexit — the U.K.’s withdrawal from the European Union — has been a spur to new regulatory developments. In recent months, the British approach to dealing with Big Tech has become increasingly clear and the country is entering a neo-regulatory phase. This is strongly focused on regulating “online harms” and developing a pro-competition approach that engenders innovation.
Interconnection Regulation For Digital Platforms: The New Challenges and Lessons from the U.S. Telecommunications Industry
By Kun Huang, Ziyi Qiu (Compass Lexecon) and Zhaoning Wang (University of Illinois)
This article brings the discussion of potential interconnection regulation for digital platforms. By reviewing the lessons from the U.S. telecommunication industry and the distinctive features of digital platforms, the article explores the new challenges of interconnection regulation for digital platforms.
Platform Regulation: Taking Stock of Lessons from the Media Sector
By Dr. Konstantina Bania (Geradin Partners)
The paper discusses whether the proposals under consideration to regulate platforms have taken stock of lessons learnt from the design and implementation of rules applicable to the media. It focuses on four areas: rules restricting concentration through presumptions of market power; the users’ role in controlling market power; mandated access to a valuable input; and merger control rules.
Competition, Defaults, and Antitrust Remedies in Digital Search
By Francesco Decarolis and Muxin Li (Bocconi University)
The business model of most digital platforms where online ads are sold is that of a two-sided market, where one group has preferences regarding the number of users in the other group. This positive cross-side network effect endows dominant platforms with huge comparative advantages and this “winner takes all” tendency raises antitrust concerns. This article studies the recent changes involving search advertising related to the EU Commission Google Android case.
The TechREG Chronicle is our monthly journal that features articles from experts on technology regulation to drive discussion and debate. To receive this publication, subscribe here.
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