Platform ecosystems, market hierarchies and the megacorp: The case of Reliance Jio

Abstract

The ‘great integration’ of disparate economic sectors by ‘Big Tech’ has been fuelled by the massive expansion of mobile infrastructure, especially in developing countries, and the systemic enclosure of users within multi-sided marketplaces operating under the euphemism of ‘platform ecosystems’. Taking the case study of India’s ‘national champion’ Reliance Jio, this article considers the ways in which India’s leading ‘corporate’ has deployed the ‘ecosystem’ blueprint and adopted the strategic role of the oligopolistic megacorp in India’s digital economy. It has done so, seemingly, without adopting the institutional form upon which Eichner’s founding proposition rests. Consequently, we argue that the separation of ownership and management as per the North American corporate form is not fundamental to the status, function or strategy of a conglomerate oligopoly. Rather, we propose that the megacorps of the digital age have an arisen as an inevitable consequence of market hierarchies in the digital economy, and that the key institutional factor in the consolidation of their market power is the licence of the state.