However, Govil said the unique features of internet markets such as ‘network effect’, which creates winner-takes-all markets and the geographic expansion of the market across borders, have given rise to several concerns. “While efficiency is a positive externality of network effect, monopoly has also become a norm in these technology-driven markets," said Govil. “Most initially start as a platform to connect buyers and sellers but eventually transform into suppliers on their own platform. “However, it needs to be kept in mind, many new age markets are nascent and evolving. Thus, policymakers and regulators must play a careful role in avoiding sub-optimal interventions and ensure that these markets remain open," said Govil, adding that the CCI is taking a nuanced approach to these issues.

Source: Mint September 26, 2019 14:54 UTC