Regulation of open and closed ecosystems

Seminar organised by Concurrences review in partnership with Fréget Tasso de Panafieu and Compass Lexecon.

David Sevy

Regulation of digital ecosystems could only be justified if market failures are identified. Ecosystems are made up of several "bricks" with different roles but whose functions are highly interdependent, which economic analysis must take into account. A first brick is that of applications and content, whose economy is marked by scale and network effects, both direct and indirect. For example, the value placed on an application is often greater the more users it has. This is true of social networks or online games, but also of certain applications for personal use. In the world of applications, the search for differentiation (vertical and horizontal) is natural and innovations are constant, leading to both success and failure. The operating system (OS) is the second brick. It is the heart of the ecosystem, the transmission belt between users and applications, which determines the value of content and applications by users. Operating systems are also undergoing constant innovation; the effects of direct networking are obvious. Finally, the third brick, the device, is not necessarily manufactured by the same manufacturer as the OS, there is not necessarily an exclusive relationship between the two, but their respective evolutions must go hand in hand.

Photos © Léo-Paul Ridet.

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