Research on the Policies Responding to the Rise of Platform Monopolies

Research on the Policies Responding to the Rise of Platform Monopolies

Yonggang Huang
Copyright: © 2022 |Pages: 9
DOI: 10.4018/IJIDE.303613
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Abstract

Platform enterprises operate in the platform business model, which is very different from traditional enterprises. Therefore, the legal regulation of mutual monopoly of Internet platform enterprises has become more complex. Facing the monopoly phenomenon in the platform economy market, we must have appropriate policies to deal with it and alleviate the problem of unfair resource allocation under incomplete market competition. This essay briefly analyses the corresponding policy of platform monopoly in different jurisdictions. From the antitrust experience of the United States and China, it can be concluded that preventing market monopoly is the primary goal to deal with platform monopoly. From the EU's antitrust experience, it can be supposed that preventing data monopoly is a vital goal to deal with platform monopoly. Through the combination of Anti-market monopoly and Anti-data Monopoly policies, we can appropriately deal with the platform's market monopoly, stimulate the platform's economic vitality, and create more economic value for the market.
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Literature Review

David S. Evans (2003) took the lead in introducing the bilateral market theory into the antitrust research field of the Internet platform and established the analysis framework of platform antitrust. In the Antitrust Economics of Multi-Sided Platform Markets, Evans pointed out that the bilateral market is a typical feature of network platform enterprises. In industries with bilateral market characteristics, theories, and methods such as price competition theory and multi-product pricing theory under the traditional unilateral market research framework are used; it has become more and more challenging to analyse the market competition behaviours in this kind of network platform industry, such as pricing, exclusive trading, user aggregation and so on (David S Evans, 2003). Therefore, the sector needs to establish a new theoretical framework of Internet platform monopoly legal regulation based on bilateral market theory.

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