Public interventions in platform industries: The role of interest groups and potential welfare effects


The value created by platforms that operate as in- termediaries between different customer groups has been increasing around the world. In parallel to their share in added value, their market power also increases. Entities that use these platforms to reach the final consumers have been troubled by such a distributional change as it causes their share in the value-added process to decline. They then call for public intervention to reverse it.

However, as the political economy literature suggests, public interventions generally benefit some parties at the expense of others. Moreover, any public intervention in platform industries may have unintended consequences. In an article, we analyse the public interventions towards the platform industries in Turkey; in particular, we try to emphasise the influence of interest groups and potential welfare effects of the interventions through two cases: (1) Regulation for meal card platforms, (2) Excessive pricing intervention: Sahibinden.com anti- trust decision.

The reference of the article is given below:

Köksal, E. & Uçar, B. G. (2019). Public interventions in platform industries: The role of interest groups and potential welfare effects. Network Industries Quarterly, 21(2), 3-5. Full text


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