Understanding online platforms

21 December 2015

While platforms can operate online and offline, the internet has created new opportunities to lower transaction costs by linking users. Recently, there have been calls at EU level for a special regulatory framework for online platforms. However, there are concerns that regulation would be inappropriate because it could not be sector-specific, as platforms operate across a wide range of sectors, with many different business models and pricing structures. Additionally, premature intervention might do more harm than good. Online platforms are a very recent phenomenon in a highly dynamic and competitive environment which regulation could stifle.

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EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).

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