Digital Platforms

Digital Platforms

Clients whose businesses are centered around digital platforms have retained the services of Compass Lexecon across a wide range of projects. Such matters have included cases concerning the determination of market-based rates for digital performance royalties, in which the central thrust of our work has been to develop an economic framework to model hypothetical arm’s-length negotiations between record labels and distributors of digital music content.

In markets characterized by multiple platforms – whether two-sided or multi-sided – assessment of the competitive effects resulting from a firm’s actions is often a complex exercise. Compass Lexecon has the experience and economic insight to identify the competitive constraints operating on each side of the market and determine the net effect of firm conduct on competition and consumer welfare. Similarly, in the context of mergers, Compass Lexecon brings a high level of sophistication to the assessment of likely consumer benefits and possible competitive concerns across all affected markets.

With a top roster of competition policy economists, our professional staff stands apart in their analytical expertise and ability to handle complex engagements that require a creative approach backed by rigorous economic modeling methodologies.

Compass Lexecon economists have extensive expertise in advising and analyzing digital platforms, including:

  • Rate Determinations for Mechanical Royalties
  • Rate Determinations for Performance Royalties
  • Valuation
  • Mergers and Acquisitions
  • Corporate Governance and Corporate Structure