Transactional vs Non-Transactional Digital Platforms Mergers: Evidence of Effects

In the era of global digitalization and the surge in e-commerce, it becomes imperative to establish effective strategies for the amalgamation of business structures. This is essential to bolster consumer satisfaction and to fortify market standings. Digital platforms, which facilitate the interplay of data, products, and services, assume a pivotal role in the burgeoning economy, propelling innovation and growth. Astute management of these platforms is instrumental in fostering corporate growth. This paper analyzes the amalgamation of transactional and non-transactional platforms, highlighting the strategic importance of such consolidations for business expansion and the associated risks of monopolization. It pays special attention to Amazon's mergers, which have enabled the company to extend its reach beyond book sales into leading positions in cloud computing, digital media, and consumer services. The research aims to uncover strategies that enhance a company's competitive edge through the consolidation of digital platforms. The objectives include examining the motivations behind mergers, the types of deals and their outcomes, as well as the legal and economic factors impacting competition. The study is grounded in a theoretical analysis of digital platform classifications and their merger processes, an in-depth review of Amazon's key mergers and their market impact, and the formulation of conclusions and recommendations based on the findings. Drawing on reports from the Federal Trade Commission, academic research, and statistical data, the paper provides a comprehensive view of the role of digital platforms in the economy and the significance of oversight in corporate transactions.