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Why Trust Should Be Part of the Antitrust Conversation

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Why Trust Should Be Part of the Antitrust Conversation

Boston Consulting Group,

5 min read
3 take-aways
Audio & text

What's inside?

Traditional trust measures are insufficient for guiding tech platforms to ethical behavior.

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Editorial Rating

8

Qualities

  • Controversial
  • Concrete Examples
  • For Experts

Recommendation

Traditional trust measures are insufficient for guiding tech platforms, according to the Boston Consulting Group’s think tank, the BCG Henderson Institute, whose researchers explored the demands and opportunities of contemporary business models or ecosystems. They suggest that tech platforms should take the initiative in self-governance to preserve the trust of their varied stakeholders. In a scenario that evokes the fox guarding the hen house, BCG experts suggest that self-imposed guidelines could help disruptive platforms establish restrictions that industry watchdogs would eventually enact.

Summary

Digital platforms overturned commercial expectations – just one indication that they require a different regulatory paradigm.

The Covid pandemic drove all sorts of traffic toward and – increased attention to – digital markets. Amid this boom, app developers and users alike protested digital companies’ pervasive intrusions into their privacy. 

In response, the European Union issued restrictions including penalties of up to 6% of yearly income for digital entities that rack up violations. Politicians in the United States seem increasingly interested in loosening the stranglehold such firms as Amazon and Facebook enjoy over segments of their stakeholders. To lessen these giant, digital corporations’ power, some nations now require dominant digital companies to pay for content that appears on their sites. 

The BCG Trust Index found serious deterioration in the trust...

About the Authors

Balázs Zoletnik is a BCG Henderson Institute principal in Budapest. Matthew Williams is a BCG project leader and Henderson Institute Ambassador in Washington, DC. Ulrich Pidun of Frankfurt, Marcos Aguiar of São Paulo and François Candelon of Paris are Henderson Institute managing directors and senior partners.

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