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Platform Mergers: Lessons from a Case in the Digital TV Market

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  • Marc Ivaldi
  • Jiekai Zhang

Abstract

We contribute to the analysis of mergers in two‐sided markets, in which a platform provides its service for free on one side but obtains all its revenues from the other. A structural model allowing for multi‐homing of advertisers is developed to assess a decision of the French competition authority, which approves the merger of the broadcasting services of TV channels but prohibits the merger of their advertising sales services through a behavioral remedy. We show that ignoring the interaction between the two sides of platforms in designing competition or regulatory policy can result in unexpected outcomes.

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  • Marc Ivaldi & Jiekai Zhang, 2022. "Platform Mergers: Lessons from a Case in the Digital TV Market," Journal of Industrial Economics, Wiley Blackwell, vol. 70(3), pages 591-630, September.
    • Handle: RePEc:bla:jindec:v:70:y:2022:i:3:p:591-630
    DOI: 10.1111/joie.12274
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