Book contents
- Regulating Competition in the Digital Network Industry
- Global Competition Law and Economics Policy
- Regulating Competition in the Digital Network Industry
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- Acknowledgements
- Case Law and Decisions
- Abbreviations
- 1 Introduction
- Part I The Competitors in the Digital Network Industry
- 2 Digital Goods, Platforms, and Ecosystems
- 3 Digital and Non-digital Network Industries
- 4 Digital Platforms: A New Natural Monopoly?
- Part II The Dynamics of Competition between Digital Ecosystems
- Part III A Regulatory Framework to Govern Ecosystem Competition
- Bibliography
- Index
4 - Digital Platforms: A New Natural Monopoly?
from Part I - The Competitors in the Digital Network Industry
Published online by Cambridge University Press: 20 November 2025
Book contents
- Regulating Competition in the Digital Network Industry
- Global Competition Law and Economics Policy
- Regulating Competition in the Digital Network Industry
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- Acknowledgements
- Case Law and Decisions
- Abbreviations
- 1 Introduction
- Part I The Competitors in the Digital Network Industry
- 2 Digital Goods, Platforms, and Ecosystems
- 3 Digital and Non-digital Network Industries
- 4 Digital Platforms: A New Natural Monopoly?
- Part II The Dynamics of Competition between Digital Ecosystems
- Part III A Regulatory Framework to Govern Ecosystem Competition
- Bibliography
- Index
Summary
Network industries often exhibit natural monopoly in certain markets. Here, natural monopoly is generally attributed to high sunk and fixed costs paired with low marginal costs. This chapter explains that digital platform markets are prone to concentration not only due to this combination of fixed and marginal costs but also due to self-reinforcing feedback loops that reinforce the dominance of the largest platform operators. Platform monopoly is persistent, entrenched, and the result of structural competition issues. However, even if digital markets exhibit heavily imperfect competition or natural monopoly, competitive pressures persist as there is competition at the ecosystem level. This sets apart digital platform monopoly from non-digital natural monopoly and means that regulating these markets should happen on the basis of different principles.
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- Regulating Competition in the Digital Network Industry , pp. 85 - 112Publisher: Cambridge University PressPrint publication year: 2025
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