Multisided markets and the challenge of incorporating multisided considerations into competition law analysis

Gürkaynak, Gönenç; İnanılır, Öznur; Diniz, Sinan; Yasar, Ayse Gizem

doi:10.1093/jaenfo/jnw007

Cited by 3 publications

(2 citation statements)

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“…MSP characterization: 1. Two or more groups of customers, 2. need each other in some way 3. cannot capture the value of their mutual attraction on their own 4. rely on the catalyst to facilitate value-crating interactions (Gurkaynak et al, 2017).…”

Section: Digital Platformsmentioning

confidence: 99%

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Mind Your Own Business : Understanding and characterizing valuecreated by consumers in a digital economy

Mileros

2020

Linköping Studies in Science and Technology. Licentiate Thesis

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In the context of what is commonly referred to as consumer-centric digital economy, personal data has become the new currency which is utilized by consumers to be granted access to seemingly "free apps" within so-called digital zero-price markets. Simultaneously, there are consumers, known as "content creators", who can generate million-dollar revenues annually. The current understanding of how consumers create and capture value within this new digital economy is scarce and more research is needed to systematically build a basis for creating an understanding of value creation and capture in the consumer-centric digital economy, based on a consumer perspective. The purpose of this dissertation is consequently to explore how consumers create and capture value within a consumer-centric digital economy. The explorative study also serves to obtain an initial overview of the phenomenon and the widely dispersed literature which spans different research fields. The collected data constitute more than 500 articles in combination with empirical data collected from websites. Based on the current literature, central concepts related to consumer-centric digital economy are explained. These include for instance Web 2.0, user-generated content and the consumerto-business relationship. The different concepts are discussed in relation to each other and a trend analysis shows that these concepts are on the rise and have become increasingly popular. The results show that consumers within the digital economy may take different roles, and some create value as business-oriented consumers (i.e., consumers who have a commercial interest). For instance, they make a business out of their participation in the digital economy. Examples are YouTubers, bloggers or creators in virtual worlds such as Second Life. Another, probably larger category is characterized as traditional consumers, for instance they participate in the digital economy through their use of seemingly "free" apps but do not reap any direct monetary benefits. By sharing their personal data, they take part in value creation in a more passive way. The findings also indicate that the level of control, e.g. determined by whether or not value is created within the digital platform, may characterize the prerequisites for value capture. Based on this, a taxonomy for value creation and value capture by consumers in the digital economy is developed. The study also identifies different business model types for business-oriented consumers.

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Section: Digital Platformsmentioning

confidence: 99%

“…No consensus or limited consensus on the definition of multisided markets (MSM). The users in MSM can either be distinct groups of users or the same user switching sides in each transaction (Gurkaynak et al, 2017).…”

Section: Digital Platformsmentioning

confidence: 99%

Mind Your Own Business : Understanding and characterizing valuecreated by consumers in a digital economy

Mileros

2020

Linköping Studies in Science and Technology. Licentiate Thesis

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Digital market and its adequacy of merger assessment in Indonesian business competition law

Sukarmi,

Tejomurti,

Silalahi

2024

IJLMA

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Purpose This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In addition, the implications for the development of theories of harm are investigated to explore the necessity of a relevant market definition in assessing infringement and evaluating the adequacy of Indonesian competition law. Design/methodology/approach This study is a legal analysis that uses statutory approaches, cases, comparative law and the development of theories of harm in digital mergers. The case approach is conducted by analyzing three cases decided by the Indonesia Business Competition Supervisory Commission. This approach provides insight into the response of Komisi Pengawas Persaingan Usaha concerning the merger and acquisition cases in the digital era as well as the provision of different analyses in conventional markets. However, competition can be potentially damaged in digital markets and a comparative law approach is taken by analyzing digital merger cases decided by authorities in other countries. Findings Results reveal that the digital market has created a “relevant market” that is challenging and blurred due to multi-sided network effects and consumer data usage characteristics. Platform-based enterprises’ prices fluctuate due to the digital market’s network effect and consumer data statistics. Smartphone prices depend on the number of apps and consumer data. Neoclassical theory focusing on product markets and location applied in Indonesia must be revised to establish a relevant digital economy market. To evaluate digital mergers, new harm theories are needed. The merger should also protect consumer data. Law Number 27 of 2022 on Personal Data Protection and Government Regulation on the Implementation of Electronic Systems and Transactions protects online consumers, a basic step in due diligence for digital mergers. The Indonesian Government should promptly strengthen the notion of “relevant markets” in the digital economy, which could lead to fair business competition violations like big data control. Notify partners or digital merger participants of the accessibility of sensitive data like transaction history and user location. Originality/value The development of digital market characteristics has implications for developing theories of harm in digital markets. Indonesian competition law needs to develop such theories of harm to analyze the potential for anticompetitive digital mergers in the digital economy era.

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Framing Algorithms – Competition Law and (Other) Regulatory Tools

Picht

Loderer

2018

SSRN Journal

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As other fields of law, competition law is put to the test by new technologies in general and algorithmic market activity in particular. This article takes a holistic approach by looking at areas of law, namely financial regulation and data protection, which have already put in place rules and procedures to deal with issues arising from algorithms. Before making the bridge and assessing whether the application of regulatory tools from these areas might be fruitful for competition law as well, the article discusses some recent competition cases involving algorithmic market activity. It concludes with policy recommendations.

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Multisided markets and the challenge of incorporating multisided considerations into competition law analysis

Cited by 3 publications

References 0 publications

Mind Your Own Business : Understanding and characterizing valuecreated by consumers in a digital economy

Mind Your Own Business : Understanding and characterizing valuecreated by consumers in a digital economy

Digital market and its adequacy of merger assessment in Indonesian business competition law

Framing Algorithms – Competition Law and (Other) Regulatory Tools

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