How Marketplaces Are Becoming Their Own Regulators

When you sell on a platform like Amazon or Etsy, you agree to a terms-of-service contract that governs everything from returns to intellectual property disputes. But what happens when that contract functions more like a legal system than a business agreement? In this episode, Lucas and Luna explore how online marketplaces have quietly built their own regulatory frameworks — complete with courts, fines, and appeals processes — that sometimes supersede local laws. They examine a 2025 study from the University of Chicago that analyzed 40 major platforms' dispute resolution systems, finding that 27 now operate internal 'courts' that handle over 90% of seller conflicts without involving state or federal courts. The hosts discuss the case of a European seller who lost her business after a platform's automated copyright takedown with no human review — and how the EU's Digital Services Act is now forcing platforms to add due process. Is the platform-as-government model efficient or dangerous? Tune in for a nuanced look at the new private legal order. #MarketplaceRegulation #PlatformGovernance #TermsOfService #DisputeResolution #DigitalServicesAct #PrivateCourts #Etsy #Amazon #Uber #Airbnb #Business #Technology #RegulatoryPolicy #SellerRights #DueProcess #FexingoBusiness #BusinessPodcast #PlatformEconomy Keep every episode free: buymeacoffee.com/fexingo