Digital platforms are at the heart of online economic activity, connecting multi-sided markets of producers and consumers for various goods and services. Their influence over transaction flows, and their strength of position within a business ecosystem, raise concerns that platform businesses could engage in anti-competitive practices that reduce innovation and consumer welfare. This webinar will examine digital market competition and the role of regulation in addressing these concerns. We'll discuss: ✅ Gatekeeper platforms ✅ Anti-competitive behavior ✅ The role of data in platform fairness ✅ Mergers and acquisitions If you are a Platform Professional or if platform businesses are operating in your industry - don't miss this webinar. We’ll explore the changing digital environment and how organizations and regulations need to adapt.

1. Regulatory Risk &
Platform Strategy
What You Need to Know
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2. https://www.linkedin.co
m/in/ggparker/
https://www.linkedin.c
om/in/marshall-van-
alstyne-62006413/
https://www.linkedin.co
m/in/dyan-finkhousen/
https://www.linkedin.c
om/in/peter-c-evans-
phd-217b8/
@g2parker @InfoEcon
@DyanFinkhousen @pevans_c
Advancing the theory and practice of platform strategy
Platform Strategy Institute
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https://www.linkedin.com/company/
platform-strategy-institute/
@PlatformStrate1
info@platformstrategyinstitute.com
https://platformstrategyinstitute.com/

3. Business
Implications
Evaluate Key
Outcomes
Map Regulatory
Trajectories
Mapping the Regulatory Landscape
Develop critical
thinking and analysis
to map plausible
futures that will
shape economic,
political and social
landscape between
now and 2030.
Articulate not only
the first and second
order consequences
but also the deeper
3rd and 4th order
consequences.
Present the impact
and strategic
implications that
arise from the
scenarios for key
business metrics.
7 Policies shaping platforms
Regulatory trajectories
Two-level games
Deep dive on competition policy
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4. The policy
landscape is
becoming more
complex for
platforms
7 major policy arenas shaping platform regulatory landscape
Today’s
deep dive
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5. Regulatory Trajectories
Race to
the top:
Convergence toward higher
common standard
Race to the
bottom
Convergence toward lower
common standard
No Race
Persistence of national
differences
Dynamic Outcome
Frameworks for analyzing policy
Source: Dale D. Murphy, 2005. "Interjurisdictional Competition and Regulatory Advantage," Journal of International Economic Law, Oxford University
Press, vol. 8(4), pages 891-920, December.
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6. Source: Robert Putnam’s Two-Level Game theory (Putnam, 1988)
International level
Governments seek to maximize their ability to
satisfy domestic pressures, while minimizing
the adverse effects of foreign negotiations.
National level
Domestic groups pursue their own agenda and
can collaborate with government to design
favorable policies.
Two-Level Game
Level I
Level II
Frameworks for analyzing policy
International
Actors
Domestic
Actors
Domestic
Actors
Government
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7. Regulatory Competition:
International forces shaping platform regulation
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8. The Chinese have a rich and long history as a civilization-state. Under the tributary system, outlying states paid tribute to the Middle Kingdom.
The strong sense of superiority rooted in China's history promises to resurface in twenty-first century China. A culturally self-confident Asian
giant with a billion-plus population, China will likely resist globalization as we know it. This will have powerful ramifications for the rest of the
world.
Anu Bradford. 2020. The Brussels Effect: How the European Union Rules the World. New York: Oxford
University Press.
Additional Reference
Bradford argues the EU remains an influential superpower that shapes the world in its image. By promulgating regulations that shape the
international business environment, elevating standards worldwide, and leading to a notable Europeanization of many important aspects of global
commerce, the EU has managed to shape policy in areas such as data privacy, consumer health and safety, environmental protection and
antitrust.
Martin Jacques. 2009. When China Rules the World: The End of the Western World and the Birth of a New Global
Order. New York: Penguin Press.
www.platformstrategyinstitute.com Copyright (c) 2021 Platform Strategy Institute LLC. All Rights Reserved.
Cabral, L., Haucap, J., Parker, G., Petropoulos, G., Valletti, T. and Van Alstyne, M. The EU Digital Markets Act. Publications
Office of the European Union, Luxembourg, 2021, ISBN 978-92-76-29788-8 (online), doi:10.2760/139337 (online), JRC122910.
Over the last years, several reports highlighted the market power of very large online platforms that are gatekeeping intermediaries between
businesses and consumers, and the difficulty for classic competition policy tools to deal effectively with anti-competitive practices in these
platforms. This report presents an independent economic opinion on the DMA, from a high-level Panel of Economic Experts, established by the JRC
and based on existing economic research and evidence. The Panel points out the challenge of striking a balance between the benefits from network
effects of large platforms and the potential negative effects from anti-competitive behavior and winner-takes-all market forces in online services.
https://publications.jrc.ec.europa.eu/repository/handle/JRC122910

9. BRUSSELS EFFECT
CHINA INC.
AMERICA FIRST
Putting it all together– Mapping the Business Implications
Higher standards;
global influence
Strong digital
industrial policy;
great firewall
Shift away from
multilateralism
AI Policy
Gig
Workers
Trust &
Safety
Tax Policy
Anti Trust
Cross
Border M&A
Data
Nationalism
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10. Internal team dynamics: Product lines, government relations, analysts
Analysts
Product lines
Government
relations team
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Reserved.

11. Anticompetitive Behavior
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Tying
Bundling
Self-preferencing
Advertising
App store lock-in, pricing exploitation
Information asymmetry exploitation
Pre-empting competition via acquisition
Platform speed and data economies of scale strain the
relevance and enforcement impact of pre-digital era
regulatory policy.
Regulatory agencies worldwide are investigating policy
updates with one primary goal: maintain the beneficial
economic and strategic effects of platform efficiencies,
minimize the anti-competitive impact.

12. Potentially anti-competitive,
potentially justifiable
Anti-competitive, or
Gatekeeper Platform Designation & Obligation (European Example)
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Digital
Markets Act
(DMA)
Strong economic position - significant
impact on the internal market and is
active in multiple EU countries
Strong intermediation position -
links a large user base to a large
number of businesses
Has or anticipates an entrenched
and durable position in the market

13. Mergers & Acquisitions
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GFAM Cumulative acquisitions 2000-2020
GFAM M&A Goals (% Balanced, % Technology Transfer, % Talent Acquisition)
Acquisitions suggest gatekeeper inorganic growth
strategies
All portfolios illustrate a record of balanced
technology and talent acquisition
Microsoft and Amazon portfolios reveal several strong
technology-focused acquisitions
Facebook portfolio reveals several strong talent-
focused acquisitions
M&A pace, transparency and scope are challenging
the effectiveness of merger policy for the digital era.
Complementing existing asset with new product: pro-competitive effect
Pre-empting potential competitor: anti-competitive effect
Challenge: Information asymmetry for regulators

14. ADVANCING THE
PRACTICE AND
PERFORMANCE OF
PLATFORM STRATEGY
We help organizations understand, deploy and
optimize performance with platform business models.
Consulting & Advisory Services
Platform Transformation & Training Services
Research & Thought Leadership
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15. Questions?
Ask us Anything - Open Discussion
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