Different digital platforms require distinct regulations

Context: Indian start-ups need to look beyond just filing complaint against Google’s new Play store policy in Competition Commission of India, and look for innovative ways to create an open and robust digital ecosystem.

Issues with digital platforms

• Openness as a challenge: Openness and low touch management are Google’s operating principles which causes much more malware as compare to a close ecosystem of Apple.
• The tendency of centralization: Even the most decentralized platforms like Bitcoin has a tendency to centralize.
• Treated alike and regulated with an even hand: Different regulators have tried to regulate and hold such platforms accountable but have failed due to one size fits all approach.

Way Ahead:

• Different Regulations for Different Platforms: Unless regulations are suitably tailored to the requirements of each, the outcomes we arrive at will inevitably be uneven. 
• For, E.g. Unlike operating systems, where developers have no choice but to conform to the restrictions, app developers are free to market their apps outside the app store platforms. 
• There is a need to encourage operating systems to multiply while strongly dis-incentivizing them from imposing untenable restrictions on developers.
• Value Open Market: Open market such as Application stores provide healthy platforms on which participants can freely interact, provide choice to consumer and act as a necessary deterrent against the use of unfair trade practices.
• Re-engineering Digital Ecosystem: In order to keep the app store businesses incentivized, app stores must be encouraged to make sure that the user is the focus of their attention.
• Checking Competition: App Stores should be prevented from joining forces with other app stores to reduce options available to developers to list their products.
• Creating innovative solutions such as Beckn Protocol which frees provider of location-based services from the constraints of aggregator platform.