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A Practical Approach to Their Economic and Social Impacts Organisation for Economic Co-operation and Development DSTI/CDEP(2018)5 For Official Use English - Or. English 30 April 2018 DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INNOVATION COMMITTEE ON DIGITAL ECONOMY POLICY ONLINE PLATFORMS: A PRACTICAL APPROACH TO THEIR ECONOMIC AND SOCIAL IMPACTS 16-18 May 2018 Delegates will find attached a draft in progress of the CDEP report on Online Platforms: A Practical Approach to Their Economic and Social Impacts. The report prepared with input from the CCP, MADE, and SPDE Secretariats, builds on the outline presented in November 2017 and the comments received on it. Delegates are invited to comment on this draft and to provide further directions to the Secretariat under Item 7 of the Draft Agenda of the CDEP meeting on 15-16 May 2018. Action Requested: The Committee is invited to discuss the draft and provide further input to finalise the report for the November meeting with a view to declassification. This document is a contribution to IOR 1.1.1.2.3 Assessing the benefits and issues arising from online platforms, of the 2017-2018 Programme of Work of the CDEP. It will also be a contribution to the Going Digital project under Pillar 2. Jeremy West, tel +33 1 45 24 17 51, [email protected] Anne Carblanc, tel +33 1 45 24 93 34, [email protected] Sarah Ferguson, tel +33 1 45 24 18 74, [email protected] JT03430998 This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ DSTI/CDEP(2018)5 NOTE BY THE SECRETARIAT Attached is the in-progress draft of a report by CDEP on Online Platforms: A Practical Approach to Their Economic and Social Impacts. The draft is based on the outline presented to CDEP, CCP, WCPS, and MADE in November 2017 and takes into account the comments received. This report will be finalised for the November 2018 meetings of CDEP with a view to declassification, and will constitute an output under Pillar 2 of the Going Digital horizontal project. Some sections of the draft are still under development and are marked with placeholders. Eventually, when all of the profiles and the typology have been completed, the profiles will be moved into an Annex, as they would encumber the main body of the report due to their length. Action required: Delegates are invited to comment on the draft and provide direction to the Secretariat under item 7 of the draft agenda for the CDEP meeting on 15-16 May 2018. Note that the CCP will be invited to provide further comments on the draft in advance of CDEP’s November 2018 meeting. ONLINE PLATFORMS: A PRACTICAL APPROACH TO THEIR ECONOMIC AND SOCIAL IMPACTS For Official Use DSTI/CDEP(2018)5 │ 3 Table of contents NOTE BY THE SECRETARIAT ........................................................................................................ 2 EXECUTIVE SUMMARY ................................................................................................................... 6 INTRODUCTION ................................................................................................................................. 7 1. PREVIOUS WORK .......................................................................................................................... 9 2. WHAT IS AN “ONLINE PLATFORM”? .................................................................................... 13 2.1. Definition .................................................................................................................................... 13 2.2. Common Economic Characteristics of Online Platforms ........................................................... 16 3. PLATFORM COMPANY PROFILES ......................................................................................... 21 3.1. Airbnb ......................................................................................................................................... 22 3.1.1. Introduction .......................................................................................................................... 22 3.1.2. Developing the Platform ...................................................................................................... 23 3.1.3. Trust and Safety ................................................................................................................... 24 3.1.4. The Financial Model and Results ......................................................................................... 25 3.1.5. Airbnb’s Main Impacts ......................................................................................................... 26 3.1.6. Conclusion ............................................................................................................................ 28 3.2. Amazon ....................................................................................................................................... 28 3.3. Alibaba ........................................................................................................................................ 28 3.4. Apple ........................................................................................................................................... 29 3.5. BlaBlaCar ................................................................................................................................... 29 3.5.1. Founding and evolution ........................................................................................................ 29 3.5.2. Business Model .................................................................................................................... 29 3.5.3. User Base.............................................................................................................................. 31 3.5.4. How BlaBlaCar Builds and Maintains Trust ........................................................................ 31 3.5.5. How BlaBlaCar Uses Members’ Data .................................................................................. 33 3.5.6. Funding and Its Implications for Valuation ......................................................................... 33 3.5.7. Service Developments .......................................................................................................... 33 3.5.8. Geographic Markets ............................................................................................................. 33 3.5.9. Positive Externalities and Benefits to Society ...................................................................... 34 3.5.10. BlaBlaCar’s Chief Policy Concern..................................................................................... 34 3.6. Facebook ..................................................................................................................................... 35 3.6.1. Corporate history/evolution .................................................................................................. 35 3.6.2. Platforms .............................................................................................................................. 35 3.6.3. Significant legal and regulatory issues ................................................................................. 44 3.6.4. Facebook’s policy concerns ................................................................................................. 45 3.7. Freelancer .................................................................................................................................... 45 3.8. Google ......................................................................................................................................... 45 3.8.1. Corporate history/evolution .................................................................................................. 45 3.8.2. The Google ecosystem ......................................................................................................... 45 ONLINE PLATFORMS: A PRACTICAL APPROACH TO THEIR ECONOMIC AND SOCIAL IMPACTS For Official Use 4 │ DSTI/CDEP(2018)5 3.8.4. Google’s Chief Policy Concern ............................................................................................ 61 3.9. Baidu ........................................................................................................................................... 62 3.9.1. Corporate history/evolution .................................................................................................. 62 3.9.2. The Baidu ecosystem ........................................................................................................... 62 3.9.3. Major Litigation ................................................................................................................... 72 3.9.4. Baidu’s main policy concerns .............................................................................................. 72 3.10. MercadoLibre ............................................................................................................................ 73 3.11. Rakuten ..................................................................................................................................... 73 3.12. Tencent ...................................................................................................................................... 73 4. INSIGHTS FROM THE PROFILES ...........................................................................................
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