Should We Regulate Digital Platforms? A New Framework for Evaluating Policy Options external link

Nooren, P., Gorp, N. van, van Eijk, N. & Fahy, R.
Policy & Internet, vol. 2018, pp: 264-301, 2018

Abstract

The economic and societal impact of digital platforms raises a number of questions for policymakers, including whether existing regulatory approaches and instruments are sufficient to promote and safeguard public interests. This article develops a practical framework that provides structure and guidance to policymakers who design policies for the digital economy. The framework differs from other approaches in taking the digital business models of platforms as the starting point for the analysis. The framework consists of three pillars, namely determining a platform's characteristics, relating these to public interests, and formulating policy options. The framework then invokes a return‐path analysis for assessing how the interventions affect the business model, whether it has the desired effect on public interests, and ensuring it has no undesired side‐effects on public interests. The framework puts forward two key messages for current discussions on digital platforms. First, one should look at the underlying characteristics of platforms rather than trying to understand digital platforms as a single category. Second, policymakers should explore existing rules and policy options, as they seem fit to deal with several characteristics of digital platforms in a time frame that matches the rapid development of platform technologies and business models.

business model analysis, competition policy, consumer protection, digital platforms, frontpage, platform regulation, public interests, Technologie en recht

Bibtex

Article{Nooren2018, title = {Should We Regulate Digital Platforms? A New Framework for Evaluating Policy Options}, author = {Nooren, P. and Gorp, N. van and van Eijk, N. and Fahy, R.}, url = {https://www.ivir.nl/publicaties/download/Policy_and_Internet_2018.pdf}, doi = {https://doi.org/https://doi.org/10.1002/poi3.177}, year = {0911}, date = {2018-09-11}, journal = {Policy & Internet}, volume = {2018}, pages = {264-301}, abstract = {The economic and societal impact of digital platforms raises a number of questions for policymakers, including whether existing regulatory approaches and instruments are sufficient to promote and safeguard public interests. This article develops a practical framework that provides structure and guidance to policymakers who design policies for the digital economy. The framework differs from other approaches in taking the digital business models of platforms as the starting point for the analysis. The framework consists of three pillars, namely determining a platform\'s characteristics, relating these to public interests, and formulating policy options. The framework then invokes a return‐path analysis for assessing how the interventions affect the business model, whether it has the desired effect on public interests, and ensuring it has no undesired side‐effects on public interests. The framework puts forward two key messages for current discussions on digital platforms. First, one should look at the underlying characteristics of platforms rather than trying to understand digital platforms as a single category. Second, policymakers should explore existing rules and policy options, as they seem fit to deal with several characteristics of digital platforms in a time frame that matches the rapid development of platform technologies and business models.}, keywords = {business model analysis, competition policy, consumer protection, digital platforms, frontpage, platform regulation, public interests, Technologie en recht}, }