Merger control and online platforms: the relevance of network effects Articles uri icon

publication date

  • October 2017

start page

  • 69

end page

  • 100

issue

  • 2

volume

  • 2

international standard serial number (ISSN)

  • 2184-0008

abstract

  • Digital platforms operate in multisided markets providing services through the internet to two or more distinct groups of users, between whiche there are indirect network effects, Direct network effects are frequently present within each group. Therefore, online platforms usually present both direct effects, between individual memebers of the same groups. Network effects may simultanesously reduce competition leading to a greater concentration and strengthening entry barriers, on the one hand, and put forward significant efficiencies on the other. This article examines some key aspects related to the impact of network effects on the assessment of mergers in two-sided markets, taking account of the recent practice of the Commission

keywords

  • Online platforms
    Multi-sided markets
    Network effects
    Merger control
    Efficiency