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Equitable Interoperability: The “Supertool” of Digital Platform Governance
Scott Morton, Fiona M. Crawford, Gregory S. Crémer, Jacques Dinielli, David Fletcher, Amelia Heidhues, Paul Schnitzer, Monika
Scott Morton, Fiona M.
Crawford, Gregory S.
Crémer, Jacques
Dinielli, David
Fletcher, Amelia
Heidhues, Paul
Schnitzer, Monika
Collections
Abstract
This Article is concerned with competition in digital platform markets where network effects are strong. As is widely acknowledged, these markets have an inherent tendency towards concentration, leaving consumers with little competition in the market. We explain how interoperability regulation can help stimulate competition in the market in a way that benefits consumers. There are different types of regulations that involve different levels of regulatory control of firms’ strategies and products. Interoperability is a form of regulation that is less intrusive than many others and is particularly suited to digital business models and fast changing digital technology. The report solicited by the European Commission on “Competition Policy for the Digital Era” (the Vestager Report) made this point in 2019,1 and we build on it here. Policy tools in this area include data portability and open standards, as well as interoperability. We will distinguish among these tools below, but we note here that the focus of this Article is on interoperability.