Page 125 - Trends in Telecommunication Reform 2016

Amazon’s strategy in the e-book market, for 4.3.4 Access, diversity, and openness
example, might be a case-in-point for this sort Chapter 4
of competition. Initially, Amazon’s e-books were Increased levels of interoperability can make
incompatible with most non-Kindle devices. But it easier for users to access content. Creating
this lack of interoperability actually aided the an account can be a hurdle for users, and once
company’s search for monopoly profits. Amazon they do so, they need to memorize an additional
e-books now can be read using Amazon’s free password. Single-sign-on digital ID infrastructure
reader software on Android, iOS, Windows, and seeks to address both of these concerns. First,
OS X devices. Still, Amazon e-books can only single-sign-on infrastructure allows users to log
be read either on Amazon devices or through into new services using existing credentials, such
Amazon’s software. as their Facebook account. This lowers the barrier
to joining new services and speeds up the process.

4.3.3 Autonomy, flexibility, and choice Second, because the user can log in without
creating a new account, it means that user needs
In almost all circumstances, increased levels of to remember only their single-sign on password,
interoperability tend to enhance user choice and instead of creating a new password. “Login with
autonomy. In interoperable ecosystems, users Facebook” is one example of this approach, which
are more likely to choose the best from among is intended to make it easier for users to log into
competitive and efficient options. Systems, a variety of online services, not just Facebook.
applications, components, etc., may be tested, com. As more sites interoperate with a single-
mixed, and matched for specific purposes. One sign-on platform, the value to the user increases,
way that interoperable systems offer choice is as it reduces access barriers to online services of
through application programming interfaces (APIs), various sorts, including e-commerce platforms.
which are instructions for how one application or
system should talk to another. Twitter had an Similarly, increased levels of interoperability
28
open API, which allowed anyone to write a Twitter can also make it easier for users to engage in
client that could access Twitter’s underlying data. commerce. The European Commission’s report
The Twitter API supported a vibrant Twitter client on the Single Digital Market noted that a lack of
ecosystem, and users could switch easily between interoperability, primarily at the technological and
the Twitter clients of their choice. Twitter’s institutional levels, made it hard for consumers to
decision to change its API in order to capture all purchase online goods to be shipped from one EU
of the client traffic (ultimately capturing the ad country to another. This was reducing access to
revenue) has reduced user choice and nearly those goods and suppressing online commerce. In
eliminated the availability of third-party clients. 29 response, the Commission called on the member
states “to improve the interoperability of systems
Users are not the only ones with greater freedom for cross-border delivery of goods and services….” 31
of choice when the level of interoperability
increases. Consider, for instance, e-book In addition, there appears to be positive
publishers that run the risk of getting locked correlation between interoperability and
into a single distribution channel. If Amazon “diversity.” As noted above, Twitter’s open API
builds up a dominant market position based on supported a variety of clients. Moreover, when
a non-interoperable system, publishers will have that API was restricted, it quickly led to a decrease
no choice but to sell to Amazon at nearly any in the diversity of Twitter clients, with several
price it demands. By contrast, an interoperable unable to sustain their businesses following
system would lower the barriers to entry, making Twitter’s changes.
it difficult for Amazon to lock publishers into
bad deals. In fact, it was this fear that led to a
recent high-profile dispute between Amazon and 4.4 Potential risks and drawbacks
publishers.
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Interoperability is not an unalloyed good. In
certain instances, greater interoperability brings
drawbacks. These problems tend to be highly
fact-specific and are often not problems related to

Trends in Telecommunication Reform 2016 107