Platform Power: Investigating the Dynamics of Dominant Platforms and their Impact on Industry Competition


  • Dr. Sadia Nadeem Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Karachi Author


digital ecosystem, regulation, anti-trust, innovation, competition, data advantages, network effects, platform power


In today's digital landscape, dominant platforms like Amazon, Google, and Facebook wield immense power, shaping industry dynamics and influencing competition in profound ways. This article delves into the concept of platform power, exploring its characteristics, the factors contributing to its emergence, and its multifaceted impact on industry competition. Drawing on relevant academic literature and real-world examples, we analyze the mechanisms through which platforms leverage network effects, data advantages, and strategic control to create and defend their dominant positions. We further examine the consequences of platform power, including stifled innovation, reduced consumer choice, and potential anti-competitive practices. Finally, we discuss potential policy and regulatory frameworks aimed at mitigating the negative impacts of platform power while fostering a healthy and competitive digital ecosystem.