The Digital Sway

Context: Open protocol system as an alternative to Digital Platforms will pave the way for data sovereignty.

Positives of Platforms

• Bring together producers, resellers and consumers: With the use of  Technology layers that leverage the internet.

• Reduce transaction costs by cutting out intermediaries. 
• The concentration of platform with limited companies only: due to network effects and the non-portability/lock-in.

Problems with Platforms 

• Concentrated Market Power: There may be multiple platforms in the game to start with, but due to network effects and the non-portability/lock-in, only a few come to dominate each space.

• • • Big platforms try to trap the customers: although net neutrality rules have made the internet an open playing field.
    • Anti-competitive behaviour of platforms: is a natural outcome of the pursuit of greater profit and dominance. 
    • Levying penalties or breaking up large corporations will not solve the problems platform.

• May Reduce Transparency: Neo-intermediaries restrict direct contact: between service providers and customers.
• Weaponize/ influence their users: for subverting voter behaviour or shaping public discourse.
•  For E.g. Facebook prompted its users to send emails to TRAI in favour of Free Basics. 
• Privacy Issues: User data surveillance for influencing user behaviour and guiding the buying decisions without the user being aware of its extent or purpose.
• Platforms subvert the basic objective of the internet: by replacing disintermediation into platform enabled mediation.

Way Forward: Open Protocol System/Approach

• Non-rivalrous and non-excludable by design: It addresses the needs of the diverse business -
• For E.g. The Unified Payment Interface (UPI) allowing  third-party innovators to drive adoption by creating solutions 
• Foster Innovation and Enhance Service Delivery: 
• Universally accepted API definitions: will create an open protocol/network environment for various start-ups to use for innovation.
• For E.g. In healthcare, it could facilitate finding a doctor, booking an ambulance, taking out insurance, filing a claim, sharing a medical report or purchasing medicines from a pharmacy

Benefits of Open Protocol System

• Participation is not at the discretion of the platform provider. 
• Address the needs of the diverse business community and achieve greater penetration for e-commerce.
• Even the smallest of application developers or start-ups can offer low-cost and locally relevant solutions.
• Enabling entrepreneurs to compete on their quality and reputation alone. 
• Eliminate the need for centrally manned clearinghouses.

Conclusion: Open platform system issues like portability from one application to another, privacy and data empowerment must be addressed for ensuring data self-reliance.