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Google, Facebook, Amazon, eBay: Is the internet driving competition or market monopolization?

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  • Haucap, Justus
  • Heimeshoff, Ulrich

Abstract

This paper discusses the general characteristics of online markets from a competition theory perspective and the implications for competition policy. Three important Internet markets are analyzed in more detail: search engines, online auction platforms, and social networks. Given the high level of market concentration and the development of competition over time, we use our theoretical insights to examine whether leading Internet platforms have non-temporary market power. Based on this analysis we answer the question whether any specific market regulation beyond general competition law rules is warranted in these three online markets.

Suggested Citation

  • Haucap, Justus & Heimeshoff, Ulrich, 2013. "Google, Facebook, Amazon, eBay: Is the internet driving competition or market monopolization?," DICE Discussion Papers 83, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  • Handle: RePEc:zbw:dicedp:83
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Blog mentions

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    1. Google, Facebook, Amazon, eBay: Is the internet driving competition or market monopolization?
      by jccavalcanti in JCC.com on 2013-02-04 19:21:44

    Citations

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    Cited by:

    1. Justus Haucap & Torben Stühmeier, 2016. "Competition and antitrust in Internet markets," Chapters,in: Handbook on the Economics of the Internet, chapter 9, pages 183-210 Edward Elgar Publishing.
    2. Jordana VIOTTO, 2015. "Competition and Regulation of Crowdfunding Platforms: A Two-sided Market Approach," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 33-50, 3rd quart.
    3. Dolata, Ulrich, 2017. "Apple, Amazon, Google, Facebook, Microsoft: Market concentration - competition - innovation strategies," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2017-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    4. Budzinski, Oliver, 2017. "Wettbewerbsregeln für das Digitale Zeitalter - Die Ökonomik personalisierter Daten, Verbraucherschutz und die 9. GWB-Novelle," Ilmenau Economics Discussion Papers 108, Ilmenau University of Technology, Institute of Economics.
    5. Misterek, Fokko, 2017. "Digitale Souveränität: Technikutopien und Gestaltungsansprüche demokratischer Politik," MPIfG Discussion Paper 17/11, Max Planck Institute for the Study of Societies.
    6. Paul J.J. Welfens, 2014. "Competition in Telecommunications and Internet Services: Problems with Asymmetric Regulations," EIIW Discussion paper disbei205, Universitätsbibliothek Wuppertal, University Library.
    7. Budzinski Oliver & Köhler Karoline Henrike, 2015. "Is Amazon The Next Google?," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 263-288, January.
    8. Dolata, Ulrich, 2014. "Märkte und Macht der Internetkonzerne: Konzentration - Konkurrenz - Innovationsstrategien," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2014-04, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    9. Borsenberger, Claire & Cremer, Helmuth & De Donder, Philippe & Joram, Denis, 2015. "Differentiated pricing of delivery services in the e-commerce sector," IDEI Working Papers 854, Institut d'Économie Industrielle (IDEI), Toulouse.
    10. Budzinski, Oliver & Grusevaja, Marina, 2017. "Die Medienökonomik personalisierter Daten und der Facebook-Fall," Ilmenau Economics Discussion Papers 107, Ilmenau University of Technology, Institute of Economics.
    11. Nestor Duch-Brown, 2017. "The competitive landscape of online platforms," JRC Working Papers on Digital Economy 2017-04, Joint Research Centre (Seville site).
    12. Barnett, George A. & Ruiz, Jeanette B. & Xu, Weiai Wayne & Park, Ji-Young & Park, Han Woo, 2017. "The world is not flat: Evaluating the inequality in global information gatekeeping through website co-mentions," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 38-45.
    13. repec:zbw:zewexp:170570 is not listed on IDEAS
    14. Haucap, Justus & Kehder, Christiane, 2014. "Stellen Google, Amazon, Facebook & Co. wirklich die marktwirtschaftliche Ordnung zur Disposition?," DICE Ordnungspolitische Perspektiven 62, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    15. Schrape, Jan-Felix, 2016. "Social media, mass media and the 'public sphere': Differentiation, complementarity and co-existence," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2016-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    16. Robin Mansell, 2015. "Platforms of power," LSE Research Online Documents on Economics 61318, London School of Economics and Political Science, LSE Library.
    17. repec:eee:aosoci:v:60:y:2017:i:c:p:79-95 is not listed on IDEAS
    18. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Krämer, Jan & Frübing, Stefan & Kesler, Reinhold & Saam, Marianne, 2016. "Metastudie zum Fachdialog Ordnungsrahmen für die Digitale Wirtschaft: Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 147040.
    19. Haucap, Justus, 2015. "Ordnungspolitik und Kartellrecht im Zeitalter der Digitalisierung," DICE Ordnungspolitische Perspektiven 77, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    20. Haucap, Justus & Heimeshoff, Ulrich, 2017. "Ordnungspolitik in der digitalen Welt," DICE Ordnungspolitische Perspektiven 90, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    21. Haucap, Justus & Kehder, Christiane, 2018. "Welchen Ordnungsrahmen braucht die Sharing Economy?," DICE Ordnungspolitische Perspektiven 94, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    22. Jan KRÄMER & Michael WOHLFARTH, 2015. "Regulating Over-the-Top Service Providers in Two-Sided Content Markets: Insights from the Economic Literature," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 71-90, 3rd quart.
    23. Budzinski, Oliver, 2016. "Aktuelle Herausforderungen der Wettbewerbspolitik durch Marktplätze im Internet," Ilmenau Economics Discussion Papers 103, Ilmenau University of Technology, Institute of Economics.

    More about this item

    Keywords

    two-sided markets; online markets; digital economy; antitrust; e-commerce;

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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