Conference paper Open Access

Monopolies on Social Network Services (SNS) Markets and Competition Law

Baran, Katsiaryna S.; Fietkiewicz, Kaja J.; Stock, Wolfgang G.

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  "publisher": "Zenodo", 
  "DOI": "10.5281/zenodo.17957", 
  "title": "Monopolies on Social Network Services (SNS) Markets and Competition Law", 
  "issued": {
    "date-parts": [
  "abstract": "<p>Research questions: (1) How can we explain the development of monopolies<br />\non SNS markets? (2) Are monopolies possibly temporarily limited? (3) What<br />\ndoes this mean for competition (or antitrust) law?<br />\nResults: (1) Direct network effects (number of users) and indirect network<br />\neffects (complementary products and advertising) facilitate the development<br />\nof one standard und thus a quasi-monopoly. There is empirical evidence that<br />\nthere are indeed standards on SNS markets (Facebook in the U.S. and Germany,<br />\nVkontakte in Russia). (2) The standards seem to be temporary monopolies.<br />\nYet, no innovator survived as a standard. (3) The dominant market<br />\nposition of a standard on the SNS market alone is no problem for Article 102<br />\nof the Treaty on the Functioning of the European Union (TFEU). But if a<br />\ndominant company tries to immunize its leading position (e.g. by mergers<br />\nand acquisitions), such behavior can be scrutinized. On two-sided markets, it<br />\nwould be possible to define the relevant market much broader than the small<br />\nSNS market. When we consider the whole online advertising market as relevant,<br />\nmany of Article 102&rsquo;s problems are avoided.</p>", 
  "author": [
      "given": "Katsiaryna S.", 
      "family": "Baran"
      "given": "Kaja J.", 
      "family": "Fietkiewicz"
      "given": "Wolfgang G.", 
      "family": "Stock"
  "id": "17957", 
  "event-place": " Zadar, Croatia", 
  "type": "paper-conference", 
  "event": "Re:inventing Information Science in the Networked Society. Proceedings of the 14th International Symposium on Information Science (ISI 2015) (ISI 2015)"
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