European Union – Two-Sided Markets, Platforms and Network Effects
Global Competition Review, E-Commerce Competition Enforcement Guide, January 2019
Managing Principals Aaron Yeater and Antoine Chapsal and Vice President Joshua White provide an overview of economic considerations for online platforms in the article, “European Union – Two-Sided Markets, Platforms and Network Effects.” The authors begin with an introduction to the economics of two-sided markets, and then discuss the questions of asymmetric pricing and market definition with digital platforms. They also discuss the special considerations required when assessing competition issues for digital platforms, and review how courts have weighed the benefits and costs from potentially anti-competitive restrictions on multisided markets, with a focus on the recent UK interchange fee decisions.