New book calls for urgent government action to regulate online platforms
A new book by Dr. Luke Yates from The University of Manchester is calling for the government to take immediate action to regulate online platforms such as Airbnb and Uber. These platforms have transformed the way we work and live, but some of their impacts have been damaging—especially when it comes to housing and jobs.
In "Platform Politics: Corporate Power, Grassroots Movements and the Sharing Economy," Dr. Yates highlights how letting platforms such as Airbnb have contributed to a shortage of housing—as more homes are used for short-term rentals, fewer are available for people looking for permanent housing. Gig economy platforms including Uber and Deliveroo have also made jobs less secure—most of their workers don't receive the same benefits or protections as regular employees.
In particular, the book explores the extensive and controversial ways in which digital platforms have lobbied to avoid regulation and protect their advantages. These have included opaque approaches known as "corporate grassroots lobbying," where platforms mobilize their users and allies against legislative proposals. Dr. Yates points out that this type of lobbying is becoming more common, posing a threat to democratic processes.
To address these issues, the book proposes several urgent changes that the government should make:
- create a lobbying register: Platform companies often lobby the government in secret, making it difficult to regulate them properly. Dr. Yates calls for a mandatory register of lobbying to ensure transparency and fair governance.
- Protect housing and workers' rights: He also recommends that the government give local councils the power to prevent more houses from being turned into short-term lets. Additionally, stronger laws are needed to protect workers in the gig economy and ensure their rights are upheld.
- Implement short-term letting rules: Although the UK government has started looking into regulating short-term lets, Dr. Yates stresses that this process must not be delayed. Without stronger rules, more homes will be lost to platforms like Airbnb, making it harder for people to find affordable housing.
Digital platforms were initially celebrated for their potential benefits, such as creating new income streams and helping communities and the environment. However, Dr. Yates' research shows that these platforms have caused unexpected problems. Policymakers at all levels are struggling to regulate platforms because they often lack reliable data and cooperation from the businesses involved.
Companies like Airbnb and Uber often start operating in cities without permission, quickly expanding and attracting users. Once the government tries to regulate them, these companies use tactics like lobbying to slow down or change the laws. They even mobilize their users to fight against regulation, making it seem like it's the public pushing back when it is actually the companies themselves.
"As the digital economy continues to evolve, it's crucial that policymakers take the necessary steps to protect the public from the growing negative effects of platform businesses," said Dr. Yates. "The government needs to create more transparent lobbying rules, protect housing, and ensure workers' rights are not eroded by these rapidly expanding businesses."
Provided by University of Manchester