United States – E-commerce Economics: Market Power and Enforcement in Vertical Markets
Global Competition Review, E-Commerce Competition Enforcement Guide, January 2019
Managing Principal Rebecca Kirk Fair and Vice Presidents Nikita Piankov and Emmanuel Frot discuss vertical restraints (such as resale price maintenance; most-favored customer terms; exclusive contracts and conditional discounting; and tying and bundling) from the perspective of e-commerce businesses. In the article, “United States – E-commerce Economics: Market Power and Enforcement in Vertical Markets,” the authors first define ways in which e-commerce may differ from traditional commercial transactions. They then review the challenges that arise when using traditional competition models to evaluate vertical relationships and restraints in e-commerce. They conclude by exploring the application of these issues in the context of two recent cases: Apple e-Books and In re: Online Travel Company Hotel Booking Antitrust Litigation.