Competing with the Platform: Complementor’s privacy policy response to platform-owner entry
(A2026-134110)

AUTHORS

Shayan Abbasi, Mcmaster University; Manish Kacker, McMaster University - DeGroote School of Business,

ABSTRACT

The relationship between platforms and complementors is marked by “coopetition”, a blend of collaboration for value creation and rivalry for value capture. Platform-owner entry (POE) into complementary markets, however, can escalate this rivalry and threaten complementor survival. While prior research has examined complementor responses such as shifts in innovation or withdrawal from market space, less is known about how POE changes in a firm’s core value capture and data appropriation strategies. This study investigates whether complementors alter their monetization models (e.g., pricing, value appropriation by collecting and sharing data) in response to the competitive threat of POE. By analyzing a large-scale panel data set of mobile apps and their privacy policies and asked permissions over time, this research aims to provide evidence of data appropriation as a strategic response to POE and understand how monetization strategies shift under such competitive pressure. The findings will contribute to our understanding of platform power, digital competition, and the indirect consequences of POE on consumer privacy and user rights.