The Right Way to Regulate Digital Platforms

Based on growing signs that platforms are tipping toward monopoly in key market functions, it is very likely that antitrust is not enough of a solution without targeted regulation that opens markets to new competition. Perhaps the most important change we need is competition-expanding regulations that address the  problems antitrust cannot solve.  A new expert regulator equipped by Congress with the tools to promote entry and expansion in these markets could actually expand competition to benefit consumers, entrepreneurship, and innovation. The regulator’s goal of actively promoting competition, not simply maintaining existing competition, is a significant distinction. Given the economic constraints described above, digital platforms require an additional jolt from a regulator to promote new competition. There is not enough competition here for us to merely “maintain” it. Congress must equip the regulator with pro-competition tools such as interoperability, non-discrimination, and merger review. The regulator’s primary goal should be promoting competition.

[Gene Kimmelman is a Senior Fellow in Shorenstein's Digital Platforms and Democracy Project]