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Self-preferencing and foreclosure in digital markets: Theories of harm for abuse cases

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  • Motta, Massimo

Abstract

Antitrust agencies all over the world have been investigating large digital platforms for practices which may constitute an abuse of dominance. Here I discuss practices (including ‘self-preferencing’ and denial or degradation of interoperability) which can be interpreted as foreclosure in vertically-related or complementary markets. I discuss, in particular, a few high-profile cases involving Amazon, Apple, Facebook and Google. I focus on possible theories of harm for such cases and show that both original simple models and well-established economic theories (adapted or interpreted) provide a rationale for anti-competitive foreclosure.

Suggested Citation

  • Motta, Massimo, 2023. "Self-preferencing and foreclosure in digital markets: Theories of harm for abuse cases," International Journal of Industrial Organization, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:indorg:v:90:y:2023:i:c:s0167718723000553
    DOI: 10.1016/j.ijindorg.2023.102974
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    References listed on IDEAS

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    5. Markus Reisinger & Emanuele Tarantino, 2015. "Vertical integration, foreclosure, and productive efficiency," RAND Journal of Economics, RAND Corporation, vol. 46(3), pages 461-479, September.
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    9. Fumagalli,Chiara & Motta,Massimo & Calcagno,Claudio, 2018. "Exclusionary Practices," Cambridge Books, Cambridge University Press, number 9781107017382, Enero-Abr.
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    Cited by:

    1. Muxin Li & Ksenia Shakhgildyan, 2025. "``Frenemy'' of Two Giants: Amazon and Apple," Working Papers 25-06, NET Institute.
    2. Gambato, Jacopo & Sandrini, Luca, 2024. "Not as good as it used to be: Do streaming platforms penalize quality?," ZEW Discussion Papers 24-045, ZEW - Leibniz Centre for European Economic Research.
    3. Massimo G. Colombo & Karin Hoisl & Toke Reichstein & Salvatore Torrisi, 2023. "Open innovation, value creation and value capture : an introduction," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(4), pages 731-742, December.
    4. Motta, Massimo & Peitz, Martin, 2025. "Denial of interoperability and future first-party entry," International Journal of Industrial Organization, Elsevier, vol. 103(PA).
    5. Colangelo, Giuseppe & Martínez, Alba Ribera, 2025. "Vertical interoperability in mobile ecosystems: Will the DMA deliver (what competition law could not)?," International Review of Law and Economics, Elsevier, vol. 83(C).
    6. Chiara Fumagalli & Massimo Motta, 2024. "Economic Principles for the Enforcement of Abuse of Dominance Provisions," Working Papers 1431, Barcelona School of Economics.
    7. Johannes Johnen & Shiva Shekhar, 2025. "Foreclosure Incentives with Network Effects: A Framework for Screening Digital Mergers," CESifo Working Paper Series 12040, CESifo.
    8. Cristina Simone & Antonio Laudando, 2025. "Principles and obligations of the Digital Markets Act in regulating the economic power of gatekeepers: Positive, negative or trade-off effects?," Electronic Markets, Springer;IIM University of St. Gallen, vol. 35(1), pages 1-27, December.

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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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