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Development of Infrastructure Sharing in the Mobile Market Read chapter Read first chapter

2022 | OriginalPaper | Chapter

Issues in Regulating Online Platforms

Author : Toshiya Jitsuzumi

Published in: Policies and Challenges of the Broadband Ecosystem in Japan

Publisher: Springer Nature Singapore

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Abstract

This chapter comprises important economic characteristics of online platforms and their effects on competition regulation and network neutrality. Owing to the emergence of new technologies and new players, debate over online platform businesses has been increasing in many countries. Japan, where mobile operators have established an unshakable position in our daily lives and socio-economic activities, replacing the position of fixed operators, is not an exception. Facing their rapidly increasing dominance in the market, competition authorities in various countries have increased their scrutiny and started considering various disciplinary measures. After describing the general background, this chapter depicts the economic characteristics that enable online platforms to control the overall broadband ecosystem. Subsequently, it details the challenges that the emergence of platform businesses has brought to competition policy and finally discusses its impacts on neutral networks.

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previous chapter Development of Infrastructure Sharing in the Mobile Market
next chapter Interdependency on the Data Platform and Its Effect on the Diffusion of Autonomous Driving
Footnotes
1
Nikkei Asia (2018).
 
2
Docomo: Nikkei Asia (2020b), Japan Times (2020); Softbank: Nikkei Asia (2020a), Nikkei Asia (2021); KDDI: Japan Times (2021).
 
3
For details, see “Hearings on competition and consumer protection in the twenty-first century” (https://​www.​ftc.​gov/​policy/​hearings-competition-consumer-protection).
 
4
Regarding the 3A functions, “two-sided platform” or “online intermediation services” is sometimes used alternatively.
 
5
There is no internationally agreed-upon definition of e-commerce markets. METI (2020) defines e-commerce as “a transaction in which orders are received and placed on a computer network system using the Internet.”
 
6
Rakuten’s figures include its related distribution services such as Rakuten Travel.
 
7
The Lerner index can be alternatively obtained by using demand elasticity of the firm concerned, or its market share combined with competitor supply elasticity.
 
8
Regarding privacy issues, it may not be appropriate to assume rational decision-making by end-users because a large discrepancy is observed between the stated preference and revealed preference, called a privacy paradox (for details, see Radin 2001; Schwartz 2000; Norberg et al. 2007). Therefore, requiring an opt-in procedure may excessively restrict data use and even choke off efficient transactions.
 
9
This idea was inspired by the idea of network diversity proposed by Yoo (2009).
 
10
The official name of this Act is the “Act on the Limitation of Liability for Damages of Specified Telecommunications Service Providers and the Right to Demand Disclosure of Identification Information of the Sender (Act No. 137 of November 30, 2001)”.
 
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Metadata
Title
Issues in Regulating Online Platforms
Author
Toshiya Jitsuzumi
Copyright Year
2022
Publisher
Springer Nature Singapore
Book
Policies and Challenges of the Broadband Ecosystem in Japan

Print ISBN: 978-981-16-8003-8

Electronic ISBN: 978-981-16-8004-5

Copyright Year: 2022

DOI
https://doi.org/10.1007/978-981-16-8004-5_2