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Competition Law Encyclopedia

Interoperability Hostage

Abhivardhan

Contributor

Abhivardhan

Founder & Managing Partner, Indic Pacific Legal Research LLP · Indian Society of Artificial Intelligence and Law (ISAIL)

Definition

Interoperability Hostage refers to a situation where a dominant platform restricts, delays or conditions interoperability1 in a manner that makes users, developers or competing businesses dependent on its ecosystem. In simple terms, the platform allows others to connect only on its own terms, and then uses that control to increase switching costs, reduce consumer choice and weaken rivals.

Commentary

Origin of the term 

Interoperability Hostage as a concept has emerged in the context of digital markets, where large platforms control the technical interfaces, Application Programming Interfaces (“APIs”), protocols and standards through which users and businesses interact with their ecosystem. As network effects, tipping and lock-in have become central concerns in platform markets, interoperability has also become important as a competition remedy2 to keep digital markets open and without distortion.

Operation In Practice

In practice, this may happen when a platform initially allows third-party developers, apps or complementary services to connect with its system, but later restricts such access once it has acquired a large locked-in user base. This is often described as an “open early, closed late” strategy, where openness helps the platform grow, and later closure helps it preserve control.

It may also operate through limited APIs, unstable access, delayed approvals, lack of documentation, or technical restrictions that make third-party services less effective than the platform’s own services. For example, if a platform gives its own products privileged access to data or functionality while offering weaker APIs to competitors, rivals cannot compete properly on merit.3

A practical illustration can be seen in the EU’s Digital Markets Act framework4, where gatekeepers are required to allow effective interoperability with operating systems, hardware and software features. The concern is that interoperability should not merely exist formally, but should be equally effective in practice, without unnecessary friction, delays or technical disadvantages for third-party developers.

Sector

Interoperability Hostage as a concept is relevant to the following sectors: Digital Platforms, Mobile Operating Systems, Cloud Computing, Software, Telecommunications, App Stores, Digital Payments, Internet Services, Artificial Intelligence, Consumer Electronics, etc.

Relevance Vis-À-Vis Competition Law

The concept holds relevance in competition law because denial or restriction of interoperability can become a tool of exclusion.5 By controlling access to APIs, protocols, technical standards or device features, a dominant platform may lock users and businesses into its ecosystem, increase switching costs, reinforce network effects and create barriers for new entrants. This may reduce consumer choice, innovation, quality and market contestability.

At the same time, interoperability must be handled carefully because privacy, security and intellectual property concerns may sometimes be genuine. However, these concerns should not be used as a pretext to deny interoperability and protect the platform’s own services from competition.

Alternative Nomenclature

Interoperability Lock-in, Interoperability Restriction


  1. Sudhanshu Kumar and Garima Gupta, 'Antitrust Concerns vis-à-vis Disruptive Innovation: Takeaways for the Competition Commission of India' (2024) 19(1) IJLT 90.↩︎

  2. Laura Alexander and Randy Stutz, 'Interoperability in Antitrust Law & Competition Policy' [2021] (June) CPI Antitrust Chronicle 2.↩︎

  3. Ian Brown, 'Interoperability as a Tool for Competition Regulation' (OpenForum Academy 2020) 2.↩︎

  4. European Commission, 'Interoperability - Digital Markets Act (DMA)' (European Commission Developer Portal) <https://digital-markets-act.ec.europa.eu/developer-portal/interoperability_en> accessed 11 August 2026.↩︎

  5. Ian Brown, 'The Technical Components of Interoperability as a Tool for Competition Regulation' (CyberBRICS Working Paper, 14 September 2020) 2.↩︎

Abhivardhan

Guest Author

Abhivardhan

Founder & Managing Partner, Indic Pacific Legal Research LLP · Indian Society of Artificial Intelligence and Law (ISAIL)

Abhivardhan is an AI governance and technology law specialist whose work focuses on artificial intelligence regulation, digital competition, Indo-Pacific studies, and emerging technology policy. He founded the Indian Society of Artificial Intelligence and Law (ISAIL) in 2018 and currently serves as its President and Managing Trustee. He also leads Indic Pacific Legal Research LLP, where he undertakes interdisciplinary research and advisory work on technology governance and geopolitics. He is the author of Artificial Intelligence Ethics and International Law and has contributed to several national and international policy initiatives.