Platforms are very intertwined, where third party products increase the value of the platform far beyond the base value of the platform (i.e. the value created only by the creator of the platform).
A feedback loop is created as bigger platform attracts more third party products, which in turn make the platform even bigger. At some point it becomes impossible for new competition to enter the market.
IMO laws should treat platforms as special in order to promote creation of environments with a healthy amount of competition. Laws requiring openness of platforms seem to be one way to do it.
A feedback loop is created as bigger platform attracts more third party products, which in turn make the platform even bigger. At some point it becomes impossible for new competition to enter the market.
IMO laws should treat platforms as special in order to promote creation of environments with a healthy amount of competition. Laws requiring openness of platforms seem to be one way to do it.