New Governance of the Platform Economy

With the rapid development of digital technology, the platform economy has rapidly risen, bringing the tremendous changes in the management of business and governance. This report proposes three major challenges in collaborative governance of the platform economy: protection of rights and interests, reasonable taxation and fair competition. It is suggested that, the primary goal of governance should be to encourage innovation and development, and its regulation should be sufficiently inclusive and prudent, while the platform economy is still at an early stage.

The rapid development of digital technology has revolutionized the way business is done today. At the heart of this change is the new platform economy. In the Internet platform economy, platform, consumers and service providers form a collaborative network. The Platform is the foundation of the entire ecosystem, providing a space for the exchange of information, trading, logistics and other facilities infrastructure to consumers and service providers. A large number of consumers and service providers constitute the major players main body of the platform economy. They perform conduct various economic activities on the platform including information exchange, demand matching, payment and receipt and delivery of goods delivery. The participants of the platform economy interact influence and cooperate with each other, which enables to and this makes it possible to create greater value.

However, The development of the platform economy also requires that the existing old systems of regulation and governance be completely overhauled in order to respond to the new current trends. Three issues need to be addressed in order to establish an efficient system of collaborative governance of the platform economy: protection of rights and interests, reasonable taxation and fair competition. Whilst As the platform economy currently is still very much in its infancy early stages, Deloitte we suggests setting making innovation and development the priority primary goal of regulation. In addition, the regulation of the platform economy should embody inclusiveness and discretion be of adequate inclusiveness.

William Chou
Deloitte China Partner | Technology, Media & Telecommunications Industry Lead Partner

Iris Li
Deloitte Research Technology, Media & Telecommunications Industry Researcher

Lingxiao Zhang
AliResearch Advanced Expert