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Are Digital Platforms Public Utilities? -Lessons from the Concept’s Historical Foundations in U.S. Law-

Giovanna Massarotto|Christopher S. Yoo
법학연구소 (The Institute of Legal Studies Konkuk University)|2022.05|경제규제와 법|제15권 제1호|pp. 9-19

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키워드

remedy.networksdigital platformspublic utilitiesnatural monopoliesbusinesses affected with a public interestcommon carriage
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초록

Calls to regulate large digital platforms as public utilities invites an examination of the concept’s origins and limits. Our historical analysis reveals that public utility lacks a clear definition. Some oft-cited definitions, such as whether an industry is “affected with a public interest” or connected to transportation and distribution have been rejected by U.S. courts. Other approaches treat the term as interchangeable with natural monopoly. The landmark event was the Wisconsin Public Utility Law of 1910, which both coined the term and was modeled on Richard Ely’s views of natural monopoly. In Ely’s view, natural monopoly was a feature that arose with respect to physically interconnected networks, which does not apply to digital platforms.

Abstract

Calls to regulate large digital platforms as public utilities invites an examination of the concept’s origins and limits. Our historical analysis reveals that public utility lacks a clear definition. Some oft-cited definitions, such as whether an industry is “affected with a public interest” or connected to transportation and distribution have been rejected by U.S. courts. Other approaches treat the term as interchangeable with natural monopoly. The landmark event was the Wisconsin Public Utility Law of 1910, which both coined the term and was modeled on Richard Ely’s views of natural monopoly. In Ely’s view, natural monopoly was a feature that arose with respect to physically interconnected networks, which does not apply to digital platforms.

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