By: Harry Hong (OECD On The Level)
What are digital ecosystems and what are their characteristics?
The most successful digital companies in recent years have increasingly been building their business model around large ecosystems of complementary products and services centred around their core service. These digital ecosystems offer access to their consumers to a line of products and services with a technological linkage increasing the complementarity between them. For example, Google, in addition to its search engine, has a strong position in browsers, operating systems and video streaming. Also, Facebook, from its origins as a social network, has expanded into messaging, devices, gaming and retail.
There are several key characteristics of the digital economy that facilitate and encourage the development of digital ecosystems. As Marc Bourreau suggests, among others, large economies of scope and scale across markets, and network effects play important roles on the supply side, while consumption synergies due to technological linkages are crucial on the demand side. The complementarity of services on offer may be seen as advantageous by some customers, who then become locked in to that particular ecosystem. Also, by collecting, analysing and aggregating large amounts of data, digital ecosystems can generate significant benefits and a comparative advantage against competing firms that cannot access the data. Moreover, the value created from data and the information it incorporates is reinforced through the data feedback-loop, which is enabled through machine learning and AI technologies…
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh