????? Platforms as Regulators: Are They the New Rule-Makers?

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#BridgingTheGap (#6)

As digital platforms become increasingly dominant in our daily lives, a new question arises: Are these platforms now acting as regulators in their own right? Niamh Dunne’s article explores this intriguing idea, suggesting that large digital platforms are not just intermediaries—they are also rule-makers within their ecosystems.

What does it mean to have "Platforms as Regulators"?

Dunne argues that the concept of platforms as regulators involves these companies setting and enforcing rules that shape interactions within their digital ecosystems. This goes beyond mere business strategy—it's about platforms assuming roles traditionally held by public regulators.

1. Setting the Rules What it means: Platforms create rules that govern how users, businesses, and even competitors interact on their platforms. Example: Digital Platform's control market entry rules, quality criteria and daily market operation rules such as requirements for users and service providers or even which products are promoted or delisted on its marketplace.
2. Enforcing the Rules What it means: Platforms enforce compliance with their rules, impacting the competition and market dynamics. Example: Digital platforms' algorithms determine the visibility of content and ads, which can significantly affect business success or, for all practical purposes, control the content moderation process.
3. Regulatory Power and Market Dominance What it means: Platforms, especially those with market dominance, have the power to influence entire markets, similar to government regulators. Example: Digital platforms can surge pricing algorithms, which directly controls pricing and market behavior in real-time and potentially manipulates market dynamics.

Unanswered Questions

• Should platforms be subjected to the same level of scrutiny as public regulators?
• How do we balance the regulatory power of platforms with the freedom to innovate?
• Can platforms remain impartial rule-makers, or does their commercial interest inherently conflict with their regulatory roles?

To Keep an Eye Out

Facebook to Resist Future U.S. Government Moderation Pressure: Mark Zuckerberg expressed regret for not opposing the Biden administration's push for COVID content moderation on Facebook. He also announced that he will not contribute to electoral infrastructure in the future (Read more from WSJ and FT)

Telegram’s Founder Arrested in Major Criminal Investigation: Authorities arrested Pavel Durov as part of a broader investigation into criminal activity on the platform (Read more). Durov's hands-off approach to moderation has been well-known (Read more), and Telegram remains the only major platform that does not ban illegal content in private chats. Read more

China’s Chip Export Restrictions Impact Western Markets: China’s export restrictions on critical chip materials are hitting Western markets hard, driving up prices of essential minerals in Europe. The ripple effects are being felt across the chip industry (More here). For a broader overview of the disputes in the chip market, here.

Bridging the Gap

Recognizing platforms as regulators is crucial for policy advocates and public servants alike, as it highlights the need to scrutinize these companies' internal rule-making processes. Whether you're crafting legislation, advocating for transparency, or ensuring fair competition, understanding how platforms set and enforce their own rules can help bridge the gap between traditional regulatory approaches and the realities of the digital marketplace. This insight can be leveraged to align platforms' self-regulatory roles with broader public goals, making your work more effective in today's tech-driven world. Recognizing platforms as regulators can help bridge the gap between traditional regulatory approaches and the realities of the digital marketplace.?

• What are your thoughts on platforms as regulators?
• Is a retreat of the state inevitable in face of technological developments?
• Should we welcome this development as a new form of innovation, or does it signal a dangerous shift in power?

Share your insights in the comments below!

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Reference: Dunne, N. (2020). Platforms as Regulators. New Media & Society. Read the full article

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