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2024 | OriginalPaper | Chapter

6. A Critical Perspective on the Increasing Power of Digital Platforms Through the Lens of Conjunctural Geographies

Author : Sina Hardaker

Published in: Geographies of the Platform Economy

Publisher: Springer International Publishing

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Abstract

Drawing on expert interviews and bridging the disciplinary divide between retail studies, economic geography, and platform literature, this chapter critically assesses the changing role of digital platforms such as Amazon as market makers and gatekeepers in the retailing sector. To discuss digital platforms’ increasing power, this chapter uses the lens of “conjunctural geographies”, where digital platforms simultaneously embed and disembed themselves from the space-times they intermediate. Using a strategic deployment of conjunctural geographies, they continue to permanently shape the retail landscape on a large scale, operating rather detached from retailers involved, therewith avoiding accountabilities. Yet, the study expands the understanding of conjunctural geographies by arguing that digital platforms intentionally wish to embed temporarily. They do so on an allegedly more local level in order to increase their reach and their legitimacy, using inter alia institutions, municipalities, and agencies as intermediaries who act more or less on behalf of the platform.

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Footnotes
1
Building on his concept of conjunctural geographies, Graham (2020) argues that this understanding simultaneously leads to the vulnerability of digital platforms, as “[T]he ephemeral nature of platforms means we can avoid them, circumvent them and replicate them; their material nature suggests points of regulation and resistance”. Graham differentiates between three broad strategies (regulate, replicate, and resist) to hold platforms to account, which will not be pursued further in the context of this chapter.
 
2
The German Chamber of Commerce and Industry (DIHK) serves as the collective voice of Germany’s commercial, industrial, and service sectors. It encompasses 79 industry and commerce chambers (IHKs), representing several million businesses ranging from small kiosks to large corporate entities.
 
3
As the leading organization of the German retail sector, the HDE is the legitimate voice of the industry towards politics at the federal and EU level, as well as towards other economic sectors, the media, and the public. In this, it can rely on the broad support of state and regional associations as well as trade associations.
 
4
Due to their diverse nature, different approaches exist to categorize platform models: In general, digital platforms can be divided into B2C (business to consumer, e.g. Amazon and Meta), B2B (business to business, e.g. Amazon Web Services, Magento, and Shopify), and C2C (consumer to consumer; e.g. Kleinanzeigen, Gumtree, and Vinted).
 
5
Embeddedness, which is not defined by Graham (2020) in more detail, generally refers to the notion that economic activities are grounded in social, cultural, and political systems (Granovetter 1985; Polanyi 1957; 2001). Although first developed by sociologists, economic geographers have actively used the concept to study how spatially and historically situated non-economic factors influence the development of firms, industries, and regions. More recently, research on the digital platform economy has started to focus on embeddedness aspects (e.g. Grabher and König 2020; Hardaker 2021). Yet, difficulties remain in pinpointing digital platforms’ embeddedness. Firstly, we are still often unaware of how platforms exert influence on our lives, inter alia through the configuration of new commodities, thereby turning the often-unassuming consumers into the products themselves (Hardaker 2021). Secondly, digital platforms often operate in secrecy, with no office door to knock at and with many “institutional configurations and regulatory regimes” being “in the making” (Grabher and König 2020, p. 110).
 
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Metadata
Title
A Critical Perspective on the Increasing Power of Digital Platforms Through the Lens of Conjunctural Geographies
Author
Sina Hardaker
Copyright Year
2024
DOI
https://doi.org/10.1007/978-3-031-53594-9_6