Through network effects, a handful of collaborative platforms rise to dominate different sectors and marketplaces – such as ridesharing, holiday rentals, odd jobs and household goods. Monopoly platforms are able to increase the overall productivity of assets on an international scale, which enables them to undercut smaller ventures and initiatives.
With minimal competition, monopoly platforms attempt to take a greater proportion of financial value generated through their platforms, by increasing transaction fees and manipulating cost algorithms. Competition regulators pursue abuses of market power, but are challenged to differentiate between business models (such as P2P, C2B, B2B, and B2C) and sectors. While certain monopolies receive stricter regulations, others are relatively unrestricted.