# How effective is dynamic competition in the markets for digital platforms in delivering good economic outcomes, and what would be the effect of more intervention > Contract award record from UK public-sector procurement sources. ## Key facts - Public buyer: [UK SHARED BUSINESS SERVICES LIMITED](/buyers/uk-shared-business-services-limited/contract-awards) - Contract winner: [EUROPEAN ECONOMIC RESEARCH LIMITED](/contract-winners/european-economic-research/public-sector-contract-awards) - Award value: £39,575 - Tender value: £40,000 - Award date: 19 February 2016 - Published: 21 March 2018 - Contract start: 22 February 2016 - Contract end: 17 April 2016 - Stage: awarded - Procurement category: services - Notice ID: ec188313-9741-438f-b9d6-4e825a7828a9-206666 - OCID: ocds-b5fd17-332fe0ec-adc9-11e6-9901-0019b9f3037b ## Description The high level aim of this project is to build the evidence to inform the UK’s position on the EU consultation on online platforms\. In particular, there are two questions that this research needs to address\. 1\. How much competition, and in particular dynamic competition and innovation, is there in the digital platforms industry? 2\. Given the features of this market, is there a need to go beyond existing competition law and what would the likely effect be of additional ex ante regulation on innovation and dynamic competition? We have undertaken internal research to create a theoretical framework of ‘how’ and ‘where’ competition takes place in these industries\. The first part of our internal research involved reviewing much of the theoretical literature on two-sided platforms and industries with significant network effects to come to an initial view on how these markets are working\. The second part of this research involved testing these ideas with academic and other expert economists\. We will share this research with the successful bidder\. This research has enabled us to develop a number of hypotheses\. We would now like to test the extent to which these hold in practice\. The hypotheses we have developed as a result of this research are that: • Competition in these industries may be less obvious, but just as effective in terms of delivering positive consumer outcomes\. In particular the use of innovation to enter and re-define the boundaries of markets, competition for the market, and stronger competition on one side of the market than on the other \(in multi sided markets\) may all be able to produce positive competitive outcomes\. Furthermore it may be hard to define the boundaries of a market or of a sector if current and future competitive constraints on firms may come from sectors that may traditionally be thought of as not part of the same market\. • Whilst network effects and tipping points may make market entry more difficult, they may also make the reward for a successful market entry greater, and encourage competition for the market\. More generally, the large rewards on offer may encourage innovation and investment\. Moves to lessen the impact of tipping points may reduce this incentive\. BIS would be interested to see how the combination of risk and reward associated with entry compares with other industries\. • The same practices employed by different firms may lead to very different competitive outcomes due to subtle differences in market characteristics\. • Regulatory interventions may stifle innovation in one of two ways\. Firstly, there is a risk of reducing the ability to innovate by increasing the direct cost of innovation or by mandating certain standards\. Secondly, there is a risk of reducing the incentive to innovate by expropriating investments made in novel products, and allowing free riding\. Additional information: As part of the strategic alliance between UK Shared Business Services Ltd \(UK SBS\) and Crown Commercial Service \(CCS\), UK SBS can use the CCS eSourcing Suite for future procurements\. If you have not yet registered on the eSourcing Suite, this can be done online at https://gpsesourcing\.cabinetoffice\.gov\.uk by following the link ‘Register for CCS eSourcing’\. Please note that, to register, you must have a valid DUNS number \(as provided by Dun and Bradstreet\) for the organisation which you are registering, who will be entering into a contract if invited to do so\. Once you have registered on the eSourcing Suite, a registered user can express an interest for a specific procurement\. This is done by emailing Expressionofinterest@crowncommercial\.gov\.uk Your email must clearly state: the name and reference for the procurement you wish to register for; the name of the registered Bidder; and the name and contact details for the registered individual sending the email\. Crown Commercial Service will process the email and then enable the Bidder to access the procurement online via the e-Sourcing Suite\. The registered user will receive a notification email to alert them once this has been done\. The Sourcing documents can then be accessed on the eSourcing Suite at: https://gpsesourcing\.cabinetoffice\.gov\.uk using the instructions detailed in the Specification documents within Contracts Finder\. As a user of the e-Sourcing Suite you will have access to Emptoris email messaging service which facilitates all messages sent to you and from you in relation to any specific RFX event\. Please note it is your responsibility to access these emails on a regular basis to ensure you have sight of all relevant information\. For technical assistance on use of the e-Sourcing Suite please contact Crown Commercial Service Helpdesk : Telephone: 0345 010 3503 Training documents to support Bidders utilise Emptoris CCS eSourcing are available in the Contracts Finder Tender documents section\. ## Related contract awards - [PS26235 - Marchant v UKRI](/contracts/ocds-b5fd17-cfafd3f1-a1dd-497b-b6a8-411fbc8e021f): UK SHARED BUSINESS SERVICES LIMITED - [US Company/UKRI partnership legal fees](/contracts/ocds-b5fd17-6af87f65-a2eb-46a9-af7f-28a12f64daa4): UK SHARED BUSINESS SERVICES LIMITED - [DDaT26191 - Software Subscription and Support Services](/contracts/ocds-b5fd17-1477d583-2dd4-4704-8cdd-e6943612c211): UK SHARED BUSINESS SERVICES LIMITED - [Motor Finance Project - Market Impact Analyst](/contracts/ocds-b5fd17-8c8033e4-d584-453e-8bc7-8b99dc83fad7): FCA - [Economics Advice Support for Competition and Markets Authority Appeals](/contracts/ocds-b5fd17-10906037-f646-4e25-9534-a8069e6d3ca3): O F W A T - [Motor Finance Review Analytical Support - EER](/contracts/ocds-b5fd17-78555ddc-3e66-4641-b525-d2435805c8ff): FCA ## Source [View the original notice on Contracts Finder](https://www.contractsfinder.service.gov.uk/Notice/ec188313-9741-438f-b9d6-4e825a7828a9-206666)