Regulating Big Tech

Categories : RegTech, Regulation of Digital Financial Services


Author: Bank of International Settlements

Digital platforms and, in particular, social media platforms enjoy significant market power, which can be used in both the economic and the political arenas. Without regulatory restrictions, these platforms serve global markets and so issues of market power quickly become geopolitical issues. Thus, it is very difficult to address the issues arising from market power by regulating solely at the national level.

This BIS paper reviews the unique conditions that make digital platform markets prone to tipping. It postulates ways to restore competitive conditions in these markets and highlights the need for regulation at the international level to address the problems of digital markets.