The impact of digital platforms on traditional market structures

Abstract

The object of the research is the transformative impact of digital platforms on traditional market structures. Qualitative research is used to gain a deep understanding of how traditional market structures are impacted by digital platforms. Interviews with eight participants highlight the shift towards gig and freelance work, the erosion of traditional employment protections, and the emergence of new business models facilitated by technological advancements. The study adopted thematic analysis to analyze the collected data. The study reveals that digital platforms have significantly lowered barriers to market entry and fostered economic inclusion. As a result, the initial costs of starting a business have significantly decreased. However, they have also introduced complexities surrounding labor rights and necessitated a re-evaluation of regulatory frameworks to address monopolistic practices and ensure fair competition. This is due to the lack of labor regulations protection for freelance workers compared to traditional employment. The study stresses the need for agile, forward-looking, and internationally coordinated regulatory approaches to effectively govern digital platforms, balancing innovation with the protection of consumer and worker rights. Such an approach should aim to address the current challenges but also anticipate future developments by ensuring that regulations evolve in tandem with technological advancements without stifling innovation. Furthermore, fostering technological literacy among lawmakers, adopting adaptive regulatory frameworks, and ensuring the inclusion of diverse perspectives are crucial steps towards achieving effective governance of digital technologies. The findings contribute to the ongoing dialogue on digital governance, offering insights for policymakers, regulators, and stakeholders in crafting regulations that harness the benefits of digital platforms while mitigating their negative impacts on society.