In 2017, we published a comprehensive study to better understand the forces of change that will shape the Internet over the next five to seven years. These forces, or “Drivers of Change,” were identified through extensive consultations with experts in and out of our global community. Among the driving forces our community identified was the Internet economy.

Specifically, the community identified a concern that a lack of competition and increased market concentration could have severe implications for the Internet’s technical evolution and use. Our goal for the 2019 report was therefore to explore trends of consolidation in the Internet economy, guided by the central question: Are there trends of consolidation in the Internet economy, and if so, how will consolidation impact the Internet’s technical evolution and use?

Consolidation is not a new phenomenon, but often a natural evolution as industries and markets mature. Opportunities to reduce costs, expand market share, and enhance scalability are intrinsic incentives in any economic domain where companies acquire competitors or incorporate parts of the production chain. This is also true for the Internet economy, where we’ve seen some trends of consolidation in various markets. These are understood as growing forces of concentration, vertical and horizontal integration, and shrinking opportunities for market entry and competition.