Publications
Publications
- October 18, 2021
- Harvard Business Review Digital Articles
To Regulate Network-Based Platforms, Look at Their Data
By: Chiara Farronato and Daniel Björkegren
Abstract
Historically, antitrust authorities have taken a laissez-faire approach under the assumption that it is better to err on the side of not intervening when there is uncertainty. This has allowed companies like Google and Facebook to go on a shopping spree to acquire early-stage competitors that could have become a threat if left independent. But recent signals, such as the appointment of Lina Khan as the Chair of the Federal Trade Commission, suggest that the tide may be turning, and big tech may find themselves in the position of having to either defend their dominance as beneficial to their ecosystems or risk losing it.
But a complete overhaul of antitrust policy in the era of platform companies requires a careful balance of the benefits of scale and those of competition, a balance that we have only just begun to study empirically in a handful of cases. A better understanding of these networks can help societies fully reap the benefits of digital innovation, while mitigating emerging harms.
Keywords
Antitrust Issues And Policies; Risk and Uncertainty; Digital Platforms; Competitive Advantage; Governing Rules, Regulations, and Reforms; Innovation and Invention; Information Technology Industry
Citation
Farronato, Chiara, and Daniel Björkegren. "To Regulate Network-Based Platforms, Look at Their Data." Harvard Business Review Digital Articles (October 18, 2021).