Ecosystem Strategies for Platform-Based Business Models in Regulated Sectors:Partnerships, API Governance, and Regulatory Compliance

Abstract

Platform business models create value by enabling multi-sided interactions across ecosystems of firms, developers, and users. In regulated sectors (finance, healthcare, energy, telecommunications), platforms must reconcile network effects and openness with stringent regulatory obligations—privacy, safety, consumer protection, financial stability, and sector-specific licensing. This paper examines how platforms in regulated sectors design ecosystem strategies around partnerships, API governance, and compliance. Using comparative case studies and network analysis on three platform ecosystems (a European digital banking platform, a US health‑tech data exchange, and a Southeast Asian energy trading platform), we analyze how governance choices affect diffusion, regulatory exposure, and ecosystem resilience. We synthesize literature on platform strategy, regulation, and interorganizational networks; present methods and empirical results; and propose a contingency framework linking regulatory stringency, platform openness, and governance instruments. Findings show that tighter regulatory environments push platforms toward stronger gatekeeping, contractual controls, and technical enforcement (API throttling, provenance, consent APIs), while permissive or fragmented regimes allow more decentralized partner models but increase compliance uncertainty. We conclude with managerial implications, a prescriptive API governance toolkit for regulated platforms, and suggestions for future research.