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Wettbewerbspolitischer Handlungsbedarf bei der Verknüpfung von zweiseitigen Märkten im Internet: Der Fall Google

Author

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  • Engelhardt Sebastian von

    (Friedrich-Schiller-Universität Jena, Lehrstuhl für Wirtschaftspolitik, Carl-Zeiss- Straße 3, 07743 Jena)

  • Freytag Andreas

    (Friedrich-Schiller-Universität Jena, Lehrstuhl für Wirtschaftspolitik, und University of Stellenbosch, Department of Economics)

  • Köllmann Volker

    (Lothringer Str. 4, 81667 München)

Abstract

We discuss competition policy issues of vertical integration in internetbased two-sided markets against the background of the Google antitrust allegations. Network effects and economics of scale often lead to dominating companies, which are integrated over several markets. This implies efficiency gains but creates barriers to entry. Where entrants can appropriate dynamic effects accumulated by incumbents, barriers to entry are lowered but this reduces incumbents’ incentives to invest. Reducing multi homing and increasing switching costs is anti-competitive behaviour. Manipulating search results may leverage market power, but there is no theory on the ‚information power‘ of search engines. The concept of ‚search neutrality‘ is not convincing.

Suggested Citation

  • Engelhardt Sebastian von & Freytag Andreas & Köllmann Volker, 2013. "Wettbewerbspolitischer Handlungsbedarf bei der Verknüpfung von zweiseitigen Märkten im Internet: Der Fall Google," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 62(3), pages 311-332, December.
    • Handle: RePEc:lus:zwipol:v:62:y:2013:i:3:p:311-332
    DOI: 10.1515/zfwp-2013-0308
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    Cited by:

    1. Wiebke Roß & Jens Weghake, 2015. "10 Jahre YouTube: Von dem Aufstieg einer Plattform und der Entwicklung neuer Märkte zum Kollateralschaden einer Google-Regulierung?," TUC Working Papers in Economics 0014, Abteilung für Volkswirtschaftslehre, Technische Universität Clausthal (Department of Economics, Technical University Clausthal).
    2. Haucap, Justus & Kehder, Christiane, 2014. "Stellen Google, Amazon, Facebook & Co. wirklich die marktwirtschaftliche Ordnung zur Disposition?," DICE Ordnungspolitische Perspektiven 62, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Roß Wiebke & Weghake Jens, 2015. "10 Jahre YouTube: Von dem Aufstieg einer Plattform und der Entwicklung neuer Märkte zum Kollateralschaden einer Google-Regulierung? / 10 Years YouTube: From the Arising of a Platform and the Developme," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 195-220, January.

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    More about this item

    Keywords

    bilateral markets; Internet; Google; market power; competition policy;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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