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Analysis of Monopoly in Platform Economy and Suggestions for Countermeasures

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DOI: 10.38007/Proceedings.0001982


Xuanming Na and Yulong Ma

Corresponding Author

Xuanming Na


Abstract: In the digital era, the development of platform economy can no longer be ignored. Platforms take advantage of the Internet to connect multilateral users and have the characteristics of bilateral markets: asset-light, high user stickiness, and highly prone to monopoly by taking advantage of network externalities and network crossover. Monopoly situations mainly include: abuse of dominant market position, excessive mergers and acquisitions, data monopoly, etc. In recent years, governments have started to strengthen their regulation, but they still face difficulties in defining the market domain and defining the abuse of monopoly status. Based on the analysis of monopoly in platform economy, this paper proposes strategies such as regulatory front-loading, dynamic monitoring, clarifying data standards, improving data trading system, introducing new platforms and stimulating market vitality to promote healthy economic development and provide new ideas for government regulation.


Keywords: Network Externality; Network Intersectionality; User Viscosity; Platform Monopoly