Eem bm sustainability
5.7 Ensuring sustainability of the ecosystem The EU Commission, like other competition authorities, has not yet acquired significant experience on the assessment of competition cases involving infrastructures for inclusive ecosystems. There are three reasons for the limited relevance of ecosystems. First, and despite the prevalence of inclusive ecosystems for persons with disabilities, standard single-sided markets where sellers interact directly with buyers, at one or more levels of the supply chain is still the most common solution to deliver services. Examples of two-sided markets can be found in the area of intermediation services such as matching and employment agencies, service vouchers networks and often consist of numerous, relatively small firms that offer specific services as the small companies that offer services previously offered by municipalities. Second, the literature on inclusive ecosystems and how the business and the software ecosystem should be created, builds on the older literature on network effects in non-intermediated trade (e.g., Katz and Shapiro, 1985) and, in particular, on indirect network effects (e.g., Chou and Shy, 1990; Church, Gandal, and Krause, 2002). Agents (such as sellers) are assumed to do not compete with each other to be matched with agents on the other side (such as buyers) and agents on either side are charged for access and usage of the business ecosystem. Third, most of the theoretical work in inclusive ecosystems is still nascent. Most academic contributions have only recently been published in scientific peer-reviewed journals and they are not always empirically based. Empirical research is lacking. The very few available studies address specific issues of security for a software ecosystem. More general empirical research is indispensable. It is therefore, early for a competition authority to adopt any definite views, let alone concrete policies or assessment methodologies, concerning the application of competition policy in cases involving inclusive platforms. Indeed, there is still some lack of general consensus about what constitutes key characteristics of an inclusive ecosystem, and small changes in the modeling assumptions can lead to significant differences in the results, making it difficult to obtain general policy recommendations. P4All is assumed to work as a virtual ecosystem meeting place that aims to offer, sell and use services for persons with disabilities. The infrastructure for the inclusive ecosystem will facilitate a market for applications that sustain services by reducing duplicative costs. An important consequence of the reduction in cost for both customers, users, suppliers and providers, is an increase in the supply of applications. 5.7.1 Requisites to make the ecosystem sustainable • Allow interaction of two or more distinct groups of agents or customers. • Offer added value supporting the encouragement of the number of the groups. • Internalize the externalities created by one group for the other group reducing transaction costs and avoiding free riders. • Developing a price structure and a pattern of adhesion “homing” to the ecosystem. • Support service diffusion both between innovators (those who would try a product as a result of direct communication with them) and imitators (those who would try a product as a result of communication with someone else who has tried the product). • Stimulate customer heterogeneity among “marquee”, prestige and influencer customers. Because the attractiveness effects and possibilities to bring in more customers and its subsequent possibility to accelerate the vertical or horizontal growth of the ecosystem. • Solving coordination problems and support sequential entry of the customers or providers, Entry with significant pre-commitment investment. As in the case some agent will need to made an investment before to join the ecosystem (as in the case of video-games) and simultaneous entry of sides. Furthermore, the sustainability of the ecosystem is influenced by a series of other micro and macro factors as well as megatrends and political preferences in the member states. Some examples of this issues are: • Political issues: Privacy concerns which could harm the suppliers ability to use user’s information for delivering effective services and networking. There is today a rising concern about the use of social networking technologies for illegal conducts such as the unauthorized spread of national security information, money laundering or similar, that can restrict or impose additional or cause users to leave the service. • Taxation issues are also important as the under nature of business legation and online applications can force the payment of double fiscal obligations depending where the service has been contracted. • Economic. Fluctuations in the economy and market can affect the numbers of users seeking for services. Depending on the season some services can be demanded in different quarters of the year. Even winter respective to summer season can influence the demand of services because people possibility to spend more or less time on the Internet. • Currency exchange fluctuations as P4All is entering international markets with more depth and higher costs of doing business globally regarding places to rent, equipment, staff, transaction costs, etc. • Social users can be worried about privacy politics and its effectiveness at the moment to search for specific services • Cultural aspects related to selection of providers can be different and based on different rules. For instance, in some countries can be allow to publish a picture of the individual who offers a specific service, in other countries can be prohibited. • Technological. There is also tendency of requesting accessibility anytime anywhere and this is where mobile application is also becoming a key factor for internet services. The constant development of new technologies impacts the growth of the industry, as new solution and opportunities appears, specially for information security and data protection. As the platform is growing in its membership and adding new services, upgrade of systems are require while accommodating actual and anticipated charges in the service to overcome possible capacity constraints. • Ecological or Resilience aspects ensuring that natural disasters or other catastrophic occurrences should not interfere the access to the services, • Legal Multijurisdictions, intellectual property rights, and confidentiality have to be ensured both for producers and users. • Privacy data protection ensuring the providers will follow the user’s specific country rules and not just general basic rules. The development of an effective ecosystem demands, however, the possibility to have several points of entry, as for instance personal comput¬ers, personal digital assistants (e.g., Palm, Treo); mobile telephones etc. as well as to find innovative forms for market strategies, business models, and/or governance and critical mass. Megatrends should be introduced in services in order to be accessible every time, everywhere, as a consequence of the number of people who access online services through devices other than personal computers, including smart phones, internationalization, less globalization, a tendency towards addressing the global market as one, but placing additional features for users to customize its context in case they need it. There are also more languages available in order to make members from different part of the global begin commenced to the platform.