That turns the net benefit by entrenching big platform dominance
Yassine Lefouili and Leonardo Madio, 2022 - *Toulouse School of Economics, University of Toulouse Capitole, Toulouse, France AND **Department of Economics and Management, University of Padua, Padua, Italy “The economics of platform liability” Eur J Law Econ. 2022; 53(3): 319–351. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8857911/ //DH
However, making big platforms subject to a more stringent liability regime than smaller ones could have the unintended effect of transferring illegal content and material from big platforms towards smaller ones.45 This could strengthen the competitive advantage of big platforms if users observe or believe that the risk of being harmed (e.g., the risk of buying a counterfeit product) is larger on smaller platforms and, consequently, decide to favor (even more) big players for their online activities.46 Again, one way of addressing this problem would be to encourage the transfer of technology and data from big platforms to smaller ones and, more generally, to support the development of a well-functioning market for monitoring tools. That would allow small platforms to detect and remove illegal content and material more effectively and to ensure users that the likelihood of suffering harm on them is not higher than on big platforms.