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Internet platform regulation: platforms are not landlines

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Platforms are not landlines.Non-linear innovation
(e.g Google)
Interconnectedness of innovation
(e.g. App stores)
Financial, technical & social costs of regulation are neither trivial nor clear
(e.g. Yahoo & China, uTorrent, spam)
By encouraging innovation, costs of obsolescence threaten ‘incumbent’ monopolies and oligopolies
(e.g. PayPal, WhatsApp, Viber, Skype)

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Internet platform regulation: platforms are not landlines

  1. 1. http://bit.ly/IntePlat 1
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  4. 4. Monolith idea of telecom regulation ● Of the “Lower Layer” ○ Static hardware, not a social creation ● Regulation can assure networks that are: ● Affordable ○ Low costs ● Reliable ○ Interoperable ● Universal access ○ Innovations diffuse O 4
  5. 5. However, platforms are not landlines 1. Non-linear innovation (e.g Google) 2. Interconnectedness of innovation (e.g. App stores) 3. Financial, technical & social costs of regulation are neither trivial nor clear (e.g. Yahoo & China, uTorrent, spam) 4. By encouraging innovation, costs of obsolescence threaten ‘incumbent’ monopolies and oligopolies (e.g. PayPal, WhatsApp, Viber, Skype) 5
  6. 6. Platforms need ecosystem thinking Different businesses with different cost models Asymmetrical power Some innovations, but not all, require complementary advances Regulating experimental advances Anti-trust and IP law Interdependencies … none of which are accounted for easily by regulators 6
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