Asymmetric Content Moderation in Search Markets: The Case of Adult Websites

75 Pages Posted: 17 Mar 2025 Last revised: 12 Apr 2025

See all articles by Leonardo Madio

Leonardo Madio

University of Padua - Department of Economics and Management; CESifo (Center for Economic Studies and Ifo Institute)

Matthew F. Mitchell

Rotman School of Management

Martin Quinn

Erasmus University Rotterdam (EUR)

Carlo Reggiani

The University of Manchester

Date Written: February 01, 2025

Abstract

We study the competitive impact of content moderation by a dominant online platform. We exploit an exogenous shock that led the largest adult content platform to remove all non-verified content, eliminating 80\% of its video library. Using a difference-in-differences approach and leveraging on daily website-country level traffic data, we find that this policy resulted in a 41% drop in traffic within one month, suggesting strong user preferences for the removed content. However, much of the displaced traffic was absorbed by competing platforms, including both mainstream rivals and less regulated fringe websites. Over six months, fringe sites experienced a 55% increase in visits, far outpacing the 10% growth of mainstream competitors.  Search engines played a critical role in this reallocation: fringe platforms saw a surge in traffic from search referrals and aggregators, as users actively sought alternative content sources. We document an intensification of competition in search: the leading platform became more aggressive towards copyright-infringing rivals, strategically using DMCA filings to remove competing content from search results. Our findings highlight how asymmetric exposure to content moderation shocks can reshape market competition, drive consumers toward less regulated spaces, and alter substitution patterns across platforms.

Keywords: Content moderation, Platforms, digital services act, adult websites, porn

Suggested Citation

Madio, Leonardo and Mitchell, Matthew F. and Quinn, Martin and Reggiani, Carlo, Asymmetric Content Moderation in Search Markets: The Case of Adult Websites (February 01, 2025). Available at SSRN: https://ssrn.com/abstract=5106235 or http://dx.doi.org/10.2139/ssrn.5106235

Leonardo Madio (Contact Author)

University of Padua - Department of Economics and Management ( email )

Via del Santo, 33
Padova, 35123
Italy

HOME PAGE: http://www.leonardomadio.eu

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Matthew F. Mitchell

Rotman School of Management ( email )

Toronto, Ontario M5S 3E6
Canada

Martin Quinn

Erasmus University Rotterdam (EUR) ( email )

Rotterdam
Netherlands

Carlo Reggiani

The University of Manchester ( email )

Oxford Road
Manchester, N/A M13 9PL
United Kingdom

HOME PAGE: http://https://sites.google.com/view/carloreggianieconomics/home

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