Summary of Key Points
The platform economy was originally a valuable ally to the real economy, helping small and medium-sized businesses (SMBs) by lowering barriers and expanding their markets. However, as dominant platforms have become increasingly powerful, they have begun to squeeze out SMBs and traditional offline businesses through high commissions, forced choices, and algorithmic discrimination. This not only undermines fair market competition but also threatens the livelihoods of ordinary people who seek to start businesses or find employment. The article argues that regulating the platform economy requires upholding "dual fairness"—ensuring both the fair rules of market competition (where the strong do not exploit the weak) and the basic fairness needed for people's well-being (so that SMBs can survive and ordinary individuals have opportunities). It proposes specific approaches to achieving this through legal measures, supervision, business models, and cultural shifts.
Detailed Analysis
1. The Platform Economy Has Changed Its Purpose: From Empowering SMBs to Exploiting Them
When platforms first emerged, they provided much-needed support for SMBs. For example, small businesses could sell their products without renting expensive storefronts through delivery services, and individual entrepreneurs could reach customers nationwide via live streaming platforms. But now that these dominant platforms have grown larger, they have started to exploit these businesses:
- Exorbitant Fees: SMBs in the food service and retail sectors must pay high commissions (20%-30% on sales), technology fees, and traffic promotion costs, leaving them with only a small portion of their profits.
- Dominant Rules: Platforms control the distribution of traffic. If businesses refuse to comply with their terms (such as accepting a forced "two-out-of-one" choice or not operating exclusively on their platforms), they may face reduced visibility, decreased access to customers, or even having their products removed from sale. As a result, SMBs have gone from being independent owners to mere dependents of the platforms.
2. Offline Businesses Are Being Affected Negatively
Traditional offline businesses, such as street vendors and small shops in rural areas, were once vital for local economies and provided employment opportunities. However, the platform economy's "siphoning effect" has drawn customers and sales online:
- Fruit stores near residential areas now mostly receive orders through platforms, leaving the physical stores empty.
- Local shops in smaller towns cannot compete with the lower prices and faster delivery services offered by platforms and are gradually closing.
These offline businesses are like the "capillaries" of the real economy; suppressing them undermines its diversity. The real economy relies not only on large corporations but also on countless small businesses to remain robust.
3. The Two Aspects of Fairness
The concept of "dual fairness" is straightforward:
- Fair Market Rules: All companies, regardless of size, must follow the same rules, and platforms should not use their dominant position to bully others.
- Basic Livelihood Protection: SMBs need to be able to make a living, and consumers should feel confident in their purchasing decisions. This includes allowing small vendors to operate and providing dignified working conditions for workers.
The current issue is that platforms are breaking these principles: the rules favor large platforms at the expense of smaller businesses.
4. How to Regulate the Platform Economy?
To address these issues, the article suggests four approaches:
- Legal Protections: Clarify and enforce rules against unfair practices such as excessive fees and algorithmic discrimination.
- Supervision of Algorithms: Make platform algorithms more transparent and ensure they do not unfairly control businesses or workers (for example, by limiting penalties for delivery delays).
- Business Model Collaboration: Encourage platforms to help offline businesses adapt to the digital age, using technology to upgrade traditional industries and promote integrated online and offline growth.
- Cultural Shifts: Platforms should embrace social responsibility, integrating goals such as not squeezing out SMBs and protecting workers' rights into their business objectives.
Conclusion
The platform economy is not inherently harmful, but it must be guided by rules that ensure it serves the real economy and benefits ordinary people. By regulating its power and upholding fairness, we can ensure that the digital economy brings genuine benefits to all.