The Digital Markets Competition Forum initiative at Copenhagen Business School, directed by Prof. Carmelo Cennamo, held a virtual roundtable discussion on “Platform competition – the impact of different data-based business models” on Wednesday, June 16, at 5:00 pm CEST.
The workshop explored the policy implications of different business models (ads-based, transactions, subscriptions…), the potential harm related to them (presumed, actual, potential), and the impact on competition on and between platforms, by discussing the following issues:
- How do platforms leverage data to increase user engagement with the product?
- What is the role (positive and potentially harmful) of the platform?
- Do user engagement and data usage differ among free (ads-based) and paid (transaction or subscription-based) services and business models?
- How do the different models affect platform competition?
- Are user switching costs higher under paid vs. free platform services?
- Is multihoming lower under paid vs. free platform services?
- Are barriers to entry higher for paid vs. free platform services?
Invited experts drew on their research and shared their views. The Forum also featured the participation of Ben Savage, software engineer at Facebook, who explained how Facebook’s ads-serving algorithm works. A discussion and Q&A session followed.
Attached Documents:
- REPORT | The Impact of Platforms on Software Distribution: What Makes an Ecosystem Work? – The App Association
- SLIDES | How Facebook’s ads-serving algorithm works – Ben Savage
Watch the recording:
