Michael Katz ‘Platform economics and antitrust enforcement: A little knowledge is a dangerous thing’ (2019) Journal of Economics and Management Strategy 28 138

This article, available here, argues that, while the economics of multisided platforms have led to important insights for antitrust policy, academic knowledge falls short of providing useful advice to enforcement agencies and courts on a number of critical topics. The author identifies several areas in which economics research could potentially make significant contributions to the practical antitrust treatment of platforms. The paper is structured as follows: Section 2 discusses various economic definitions of platforms. When should a firm be defined as a multisided platform? As has been widely noted among academics, there is a lack of consensus regarding the definition of a multisided platform. For purposes of antitrust economics, a fruitful way to rephrase the question is to ask: under what conditions is it important to account for cross‐platform interactions to ensure an accurate understanding of industry equilibrium, and when is it meaningful to examine just one side of a firm’s operations? The paper reviews a number of definitions that have been…

Friso Bostoen ‘Online platforms and vertical integration: the return of margin squeeze?’ (2018) Journal of Antitrust Enforcement 6 355

The main challenge with anticompetitive conduct by online multisided platforms is finding a fitting theory of harm. The author argues here that one candidate theory has been overlooked: margin squeeze. Margin squeeze, occurs where a dominant undertaking charges a price for the product on the upstream market which, compared to the price it charges on the downstream market, does not allow an equally efficient competitor to trade profitably in the downstream market on a lasting basis. In other words, margin squeeze takes place when an upstream operator forces his downstream competitor—who is just as efficient—off the market by squeezing his profit margins. This class of abuse has for the most part been confined to the telecom sector, but its potential reaches beyond. Indeed, the tendency towards vertical integration and subsequent conduct of online platforms could renew the relevance of margin squeeze as an analytical tool. The paper is structured as follows: Section II outlines the fundamental elements of margin squeeze. This section…

Patrick Todd ‘Intra-platform exclusion in software markets’ (2018) Journal of Antitrust Enforcement 6 409

This article, available here, analyses situations where platform operators design their platforms in a way that is liable to exclude intra-platform competitors. Exclusion in intra-platform markets require certain intricacies that existing theories of harm in antitrust law do not anticipate; thus, applying those theories unyieldingly is liable to cause confusion and result in judicial error. Authorities must formulate policies that detect anticompetitive exclusion without deterring innovation, and apply that policy consistently across comparable cases. Existing cases reveal that some authorities and courts have been taking a sensible approach to intra-platform exclusion, whereas others, especially in the EU, have shown a tendency to protect excluded intra-platform firms at the expense of consumer welfare. The paper is structured as follows: Section II defines software platforms and describes platform owners’ relationships with third-parties that distribute services through their platforms. Software platforms are code-based infrastructures that facilitate exchanges and transactions through the creation of one or multiple downstream ‘intra-platform’ markets. Through a platform, users can transact with…