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Platformed! Network industries and the new digital paradigm

Author

Listed:
  • Juan J. Montero

    (Universidad Nacional de Educación a Distancia - UNED, Spain; European University Institute, Italy)

  • Matthias Finger

    (Ecole Polytechnique Fédérale Lausanne (EPFL), Switzerland; European University Institute, Italy)

Abstract

Digitalization is creating a new model of industrial organization as online platform intermediate in multisided markets. The purpose of this article is to demonstrate how the platform paradigm provides a simple and useful framework to analyze the impact of digitalization on network industries. The first online platforms (searches and social platforms) disrupted content industries (music, newspapers, media, etc.) but as platforms proliferate, they are also disrupting industries with physical assets, such as accommodation. Disruption has reached network industries, and similar features emerge as they are all being “platformed.†On the one hand, platform-based services are replacing traditional network industry services. This is the case of electronic mail and postal service and carpooling platforms and railways. On the other hand, platforms are commoditizing network industry services, as they become mere sides in multisided markets coordinated by a platform. This is the case of telecom services and over the top providers (WhatsApp, Skype, and YouTube) and, potentially, of isolated transport services and “Mobility-as-a-Service†platforms. Regulation is becoming a key consideration. First, there is a debate on whether platforms should be subject to the same regulatory obligations as traditional network players. Second, there is a debate on whether platforms should have access to network services under regulated terms. Overall, platforms are replacing former monopolists in the central role as coordinators of the sector.

Suggested Citation

  • Juan J. Montero & Matthias Finger, 2017. "Platformed! Network industries and the new digital paradigm," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 217-239, September.
    • Handle: RePEc:sae:crnind:v:18:y:2017:i:3-4:p:217-239
    DOI: 10.1177/1783591718782310
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    References listed on IDEAS

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    2. Filistrucchi, L. & Gerardin, D. & van Damme, E.E.C. & Keunen, S. & Klein, T.J. & Michielsen, T.O. & Wileur, J., 2010. "Mergers in Two-Sided Markets - A Report to the NMa," Other publications TiSEM f901d1fe-8878-444e-a685-8, Tilburg University, School of Economics and Management.
    3. Sundararajan, Arun, 2016. "The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262034573, April.
    4. Jean‐Charles Rochet & Jean Tirole, 2006. "Two‐sided markets: a progress report," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 645-667, September.
    5. David Evans & Richard Schmalensee, 2007. "The Industrial Organization of Markets with Two-Sided Platforms," CPI Journal, Competition Policy International, vol. 3.
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    Cited by:

    1. Matthias Finger & Juan Montero, 2023. "Digitalizing infrastructure, digital platforms and public services," Competition and Regulation in Network Industries, , vol. 24(1), pages 40-53, March.
    2. Anuradha Jain & Dirk Bruckmann & Rob E.C.M. van der Heijden & Vincent A.W.J. Marchau, 2019. "Towards rail-related multimodal freight exchange platforms: Exploring regulatory topics at EU level," Competition and Regulation in Network Industries, , vol. 20(2), pages 138-163, June.
    3. Charlotte Ducuing, 2020. "Data as infrastructure? A study of data sharing legal regimes," Competition and Regulation in Network Industries, , vol. 21(2), pages 124-142, June.

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