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On Gatekeepers and Structural Competition Problems.

Christian Rusche1,2, Jan Büchel1

  • 1Research Unit Digitalization, Structural Change and Competition, German Economic Institute, Konrad-Adenauer-Ufer 21, 50668 Cologne, Germany.

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Summary

The Digital Age has seen rapid growth of digital platforms, with most originating from the USA and Asia. This analysis explores platform success factors and the proposed European Digital Markets Act.

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Area of Science:

  • Digital Economy
  • Market Competition
  • Platform Economics

Background:

  • The Digital Age is characterized by the rapid expansion of digital platforms with significant global market shares.
  • Europe represents a key market for these international platforms, which are predominantly US and Asian in origin.
  • Understanding the dynamics of digital platform growth is crucial for policy development.

Purpose of the Study:

  • To identify and explain the key factors contributing to the success of major digital platforms.
  • To analyze the current market landscape of digital platforms operating in Europe.
  • To evaluate the European Commission's proposed Digital Markets Act in light of the existing market conditions.

Main Methods:

  • Analysis of the current status quo of the digital platform market.
  • Review of factors contributing to platform success.
  • Examination of the proposed Digital Markets Act.

Main Results:

  • Digital platforms exhibit rapid growth and command substantial market shares.
  • The dominance of US and Asian platforms in the European market is projected to continue.
  • The article provides insights into the drivers of platform success.

Conclusions:

  • The success of digital platforms is driven by specific, identifiable factors.
  • The proposed Digital Markets Act aims to address market imbalances created by dominant platforms.
  • Policy interventions are necessary to foster a competitive digital market in Europe.