Platform Economies and Market Power: A Systematic Review of Digital Monopoly Dynamics

Abstract

Platform economies have transformed contemporary markets by reshaping how goods, services, and information are produced, distributed, and consumed. This systematic review examines the dynamics of market power within digital platform ecosystems, with a particular focus on the emergence and consolidation of platform monopolies. Drawing on peer-reviewed journal articles, policy reports, and seminal theoretical contributions, the study synthesizes existing knowledge on how dominant platforms leverage network effects, data accumulation, algorithmic control, and ecosystem integration to reinforce market dominance. The review finds that digital platforms such as search engines, e-commerce marketplaces, and social media networks tend to exhibit strong “winner-takes-most” characteristics, driven primarily by positive feedback loops in user engagement and data-driven learning advantages. These mechanisms often lead to high entry barriers, reduced market contestability, and increased dependency of users and complementors on a small number of gatekeeping firms. The study further highlights how platform power extends beyond traditional pricing strategies to include control over visibility, access rules, and ecosystem governance. However, the review also identifies countervailing forces, including regulatory interventions, interoperability requirements, and the rise of niche or decentralized platforms. Despite these measures, significant concerns remain regarding consumer welfare, innovation constraints, and asymmetrical bargaining power within platform-mediated markets. The study concludes that digital platform monopolies represent a structurally embedded feature of modern digital economies rather than a temporary market anomaly. It calls for more interdisciplinary research combining economics, law, and data science to better understand evolving forms of platform governance and to design effective regulatory frameworks capable of preserving competition while sustaining innovation in platform-based markets.