Mechanisms of Hidden Monopoly in Iran’s Digital Platforms: Rethinking Digital Economy Policymaking

Document Type : Original Article

Authors

1 Ph.D student of Entrepreneurship, Department of Technology, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.

2 Assistant Professor, Department of New Venture Creation, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

10.22034/jstp.2025.12004.1906

Abstract

 This study aims to identify and explain the mechanisms of "hidden monopoly" in Iranian digital platforms. A phenomenon that emerges not through overt dominance but through gradual, multilayered, and interaction-driven actions. Using a qualitative approach and conducting 18 semi-structured interviews with experts in the on-demand delivery digital platform industry, data were analyzed using thematic analysis. The findings indicate that the hidden monopoly results from the cyclical interplay of three levels of platform actions: (1) at the level where the platform acts as an active agent, shaping user choices through market architecture and design; (2) at the level where the platform, as a hidden controller, directs the daily interactions of users and partners; and (3) at the level where, as a passive leveraging, it exploits regulatory gaps or institutional voids to consolidate its position. These levels not only operate independently but also interact dynamically to form a cyclical structure of invisible power in which platforms undermine competition without overtly violating antitrust regulations. The innovation of this research lies in the analytical conceptualization of the hidden monopoly phenomenon from the perspective of platform positional agency, articulated through three interrelated roles: active, controlling, and leveraging. Theoretically, the paper proposes an integrated and multilevel model for analyzing platform power, and practically, it provides a basis for rethinking digital economy policymaking in Iran.

Keywords

Main Subjects

References

[1] Harraca, M., & Gawer, A. (2023). Two-Faced Governance in Platform Ecosystems. https://doi.org/10.2139/ssrn.4483039
[2] Gawer, A., & Jacobides, M. G. (2024). Mapping Antitrust onto Digital Platforms. Caffarra, C. R. I. S. T. I. N. A.,. Competition Policy International CPI Chronicle.
[3] Chilson, N. (2020). Does Big Tech Need Its Own Regulator? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3733726
[4] Cutolo, D., & Kenney, M. (2021). Platform-Dependent Entrepreneurs: Power Asymmetries, Risks, and Strategies in the Platform Economy. Academy of Management Perspectives, 35(4), 584–605. https://doi.org/10.5465/amp.2019.0103
[5] Chen, B., & Fu, X. (2022). Antitrust Regulation Insight: China’s Digital Platforms’ New Phase. https://www.competitionpolicyinternational.com/wp-content/uploads/2022/09/Asia-Column-September-2022-Full.pdf#:~:text=with traditional physical platforms%2C digital,specific authorities
[6] Guo, X. (2024). Dilemma and Countermeasures of Antitrust Regulation in the Field of Internet Platform Economy. Applied Mathematics and Nonlinear Sciences, 1(14). https://www.researchgate.net/publication/379423760_Dilemma_and_Countermeasures_of_Antitrust_Regulation_in_the_Field_of_Internet_Platform_Economy/citation/download?_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6InB1YmxpY2F0aW9uIiwicGFnZSI6InB1YmxpY2F0aW9uIn19
[7] Li, Z., & Wang, G. (2024). Regulating Powerful Platforms: Evidence from Commission Fee Caps. Information Systems Research. https://doi.org/10.1287/isre.2022.0191
[8] Zuboff, S. (2019). The age of surveillance capitalism: The fight for a human future at the new frontier of power: Barack Obama’s books of 2019.
[9] Latzer, M., Hollnbuchner, K., Just, N., & Saurwein, F. (2016). The economics of algorithmic selection on the Internet. In Handbook on the Economics of the Internet. Edward Elgar Publishing. https://doi.org/10.4337/9780857939852.00028
[10] Upashevna, A. L., & Niyozmurod O`G`Li, E. F. (2023). COMPETITION AND HIDDEN MONOPOLY IN THE MARKETS OF UZBEKISTAN. International Journal of Law And Criminology, 3(10), 41–45. https://doi.org/10.37547/ijlc/Volume03Issue10-08
[11] Abdullahi Sule, S., & Rimi, S. (2025). Exploring Foreign Direct Investment (FDI) Flow and Economic Growth: A Systematic Approach. International Journal on Economics, Finance and Sustainable Development (IJEFSD), 7(1). https://doi.org/2620 – 6269
[12] Gawer, A. (2022). Digital platforms and ecosystems: remarks on the dominant organizational forms of the digital age. Innovation Organization & Management, 24. https://doi.org/10.1080/14479338.2021.1965888
[13] Zuboff, S. (2023). The Age of Surveillance Capitalism. In Social Theory Re-Wired (p. 11).  In Social theory re-wired (pp. 203-213). Routledge.
[14] Guo, X., & Chen, X. (2023). The Impact of Digital Transformation on Manufacturing- Enterprise Innovation: Empirical Evidence from China. Sustainability (Switzerland), 15. https://doi.org/https://doi.org/10.3390/su15043124
[15] Commission, E. (2022). Digital single market: online platforms. May 2018. https://ec.europa.eu/digital-single-market/en/online-platforms-digital-single-market
[16] van Dijck, J., Nieborg, D., & Poell, T. (2019). Reframing platform power. Internet Policy Review, 8(2). https://doi.org/10.14763/2019.2.1414
[17] Khan, L. M. (2017). Amazon’s antitrust paradox. The Yale Law Journal.
[18] Gawer, A., & Srnicek, N. (2021). Online platforms: Economic and societal effects. Mihalis Kritikos, Scientific Foresight Unit (STOA). https://doi.org/10.2861/844602
[19] Zuboff, S. (2022). Surveillance Capitalism or Democracy? The Death Match of Institutional Orders and the Politics of Knowledge in Our Information Civilization. Organization Theory, 3(3). https://doi.org/10.1177/26317877221129290
[20] Nuccio, M., & Guerzoni, M. (2019). Big data: Hell or heaven? Digital platforms and market power in the data-driven economy. Competition & Change, 23(3), 312–328. https://doi.org/10.1177/1024529418816525
[21] Martens, B. (2021). An Economic Perspective on Data and Platform Market Power. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3783297
[22] McIntosh, D. (2019). We Need To Talk About Data: How Digital Monopolies Arise And Why They Have Power And Influence. Journal of Technology Law & Policy, 23(2), 185. https://openurl.ebsco.com/EPDB%3Agcd%3A16%3A19490592/detailv2?sid=ebsco%3Aplink%3Ascholar&id=ebsco%3Agcd%3A141016368&crl=c&link_origin=scholar.google.com
[23] Montero, J., & Finger, M. (2021). Regulating digital platforms as the new network industries. Competition and Regulation in Network Industries, 22(2), 111–126. https://doi.org/10.1177/17835917211028787
[24] Ducci, F. (2022). Natural Monopolies in Digital Platform Markets. Cambridge University Press. https://doi.org/10.1017/9781108867528
[25] Khan, L. M. (2019). The Separation Of Platforms And Commerce. Columbia Law Review, 119(4). https://www.jstor.org/stable/26632275
[26] Streinz, R. (2023). Europarecht. CF Müller. https://books.google.com/books?hl=en&lr=&id=qfG1EAAAQBAJ&oi=fnd&pg=PA56&dq=Streinz+2022&ots=XhW45ylhjD&sig=JU0YyL0jcXzVe
[27] Bietti, E. (2021). A Genealogy of Digital Platform Regulation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3859487
[28] Lynskey, O. (2017). Regulating “Platform Power.” SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2921021
[29] Gawer, A., & Bonina, C. (2024). Digital platforms and development: Risks to competition and their regulatory implications in developing countries. Information and Organization, 34(3), 100525. https://doi.org/10.1016/j.infoandorg.2024.100525
[30] Yin, R. K. (2009). Case study research : Design and methods  Sage Publications
[31] Yin, R. . (2015). Qualitative research from start to finish. Yin, R. K. (2015). Guilford publications.
[32] Friese, S. (2019). Qualitative Data Analysis with ATLAS.ti. Friese, S. (2019). Qualitative data analysis with ATLAS. ti.
[33] Lincoln, Y. S., Guba, E. G., & Pilotta, J. J. (1985). Naturalistic inquiry. International Journal of Intercultural Relations, 9(4), 438–439. https://doi.org/10.1016/0147-1767(85)90062-8
[34] Poell, T., Nieborg, D., & van Dijck, J. (2019). Platformisation. Internet Policy Review, 8(4). https://doi.org/10.14763/2019.4.1425
[35] Benzell, S. G. ., & Chang, F. B. (2023). Evaluating Antitrust Remedies for Platform Monopolies: The Case of Facebook. Vanderbilt Law Review, 76(3), 773.
https://doi.org/10.1080/14479338.2021.1965888
 
 
 

Files

Share

How to cite

Statistics