EU Fines Meta €200M; Hybrid Business Models Showcased at EDIH Conference
On Thursday, October 30, four European Digital Innovation Hubs (EDIHs) showcased their practical hybrid business models at a hybrid mini-conference. The event, held in Croatia and Romania, highlighted the benefits of hybrid implementation for public administration and businesses. Meanwhile, the EU fined Meta €200 million for violating its Digital Markets Act with a 'consent or pay' system.
The conference featured EDIH Adria from Opatija, Croatia, and CROBOHUB++, along with Romanian EDIHs Wallachia eHub. They demonstrated how hybrid models can balance free and paid services, echoing the 'if the product is free, you are the product' principle. This approach allows users to choose between using services for free and sharing data or paying for privacy.
Researchers Sarit Markovich and Yaron Yehezkel have studied how platforms respond to market competition, data value, and network effects when selecting business models. Netflix's recent launch of a 'basic with ads' option illustrates this, as it reacts to intensifying competition in the streaming space.
The chosen business model significantly impacts platforms' bottom line, market share, and regulation. The conference and EU's Meta fine underscore the complexity of protecting consumer privacy and restricting prices. Regulators must recognize that there isn't a one-size-fits-all solution, and hybrid models can offer a balance between user choice and platform sustainability.
