The Case for the Digital Platform Act

To the challenges posed by the power of digital platforms, we need a “Digital Platform Act” to create an agency specifically charged to regulate digital platforms on an ongoing basis. An expert agency over digital platforms can analyze and study the market to determine when regulation or enforcement are needed, including if:

• Dominant digital platforms should be required to offer interconnection to competitors through open APIs to break down network effects that lock in users.
• Dominant digital platforms should be prohibited from self-preferencing and some types of discrimination. An agency can monitor and enforce this through “black-box testing,” protecting details of proprietary algorithms.
• There should be restrictions on acquisitions by dominant digital platforms, including non-horizontal acquisitions usually less scrutinized by antitrust agencies.
• Certain platforms that collect data from competitors (or potential competitors defined broadly) should be limited in how they can use their competitor’s data.