This presentation by Annabelle Gawer from the University of Surrey was made during the discussion on "Big Data: Bringing competition policy to the digital era" held during the 126th meeting of the OECD Competition Committee on 29 November 2016. More papers and presentations on the topic can be found out at www.oecd.org/daf/competition/big-data-bringing-competition-policy-to-the-digital-era.htm

1. Bringing Competition Policy in the
Digital Age
Understanding Digital Platforms
Prof. Annabelle Gawer
OECD Hearing on Big Data, 29 Nov 2016, Paris

2. Introduction
Platform Fundamentals: How Platforms create value
What is Different about Data-Enabled Econ Activities: Consumers generate data
Recommendation: Reduce market distortions at the global level
Agenda
2
© Annabelle Gawer 2016. Please do not share or post without permission and without attribution

3. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
Some of my publications on digital platforms
3

4. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
5
Platforms Examples

5. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
5

6. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
Platforms: From INSIDE to OUTSIDE the Firm

7. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
Platform Technologies
7
Innovation platforms are
technologies that facilitate
the development of
complementary innovation in
innovation ecosystems
• Re-Use: Economies of
scope in innovation
• Connect: Sharing IP and
tools to connect (APIs) =>
Reducing barriers to entry
for complementors in
complementary innovation
• Be a Magnet: Reduced
search cost of
complementary innovators

8. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
Platform Economics
Platform Business Models for computer-mediated transactions
8

9. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
Dating
Bars
Amazon
market-
place
Transactional
Air BnB
UBER
Google
ARM
Intel micro-
processor
The platform serves as an
intermediary for direct
exchange or transactions,
subject to network effects
Innovation
The platform serves as a
technological foundation on top
of which other firms develop
complementary innovations
Facebook for
Developers
Apple iOS
Apple
App
Store
Google
Android
Facebook
SAP
NetWeaver
Innovation
Platforms
Transaction
Platforms
Match.com
Google
Play
Apple
AUTOSAR
Qualcomm
PLATFORMS

10. © Annabelle Gawer 2016. Please do not share or post without permission and without attribution
10
ServiceData
Consumes
Produces
Improves
experience
One data set
and common semantic
Users generate data as they consume data
15
User

11. Platform Fundamentals: How Platforms create value
•Economics & Design
•Transaction & Innovation
•Network Effects, Market Power, Barriers to Entry: Debunking myths
What is Different about Data-Enabled Econ Activities: Consumers generate data
•Consumers are not just consumers: also producers, and co-innovators
•Different roles of Data: Input, Process technology, Output, Expression of free Speech
Recommendation: Reduce market distortions at the global level
•Difficult trade-offs along multiple non-commensurate dimensions, role for public-interest bodies
•Don't re-invent Antitrust, but Antitrust is Silo-ed: Link it up with other protection agencies
•Global regulator of Data and a Global Competition Authority
Summary
11
© Annabelle Gawer 2016. Please do not share or post without permission and without attribution

12. Thank you!
a.gawer@surrey.ac.uk