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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        <foaf:name>Fietkiewicz, Kaja J.</foaf:name>
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        <foaf:name>Stock, Wolfgang G.</foaf:name>
        <foaf:givenName>Wolfgang G.</foaf:givenName>
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    <dct:title>Monopolies on Social Network Services (SNS) Markets and Competition Law</dct:title>
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    <dct:issued rdf:datatype="http://www.w3.org/2001/XMLSchema#gYear">2015</dct:issued>
    <dcat:keyword>Information markets;</dcat:keyword>
    <dcat:keyword>Social Network Services;</dcat:keyword>
    <dcat:keyword>Facebook;</dcat:keyword>
    <dcat:keyword>Competition law;</dcat:keyword>
    <dcat:keyword>Monopoly;</dcat:keyword>
    <dcat:keyword>Art. 102 TFEU;</dcat:keyword>
    <dcat:keyword>EC merger regulation</dcat:keyword>
    <dct:issued rdf:datatype="http://www.w3.org/2001/XMLSchema#date">2015-05-26</dct:issued>
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    <dct:description>&lt;p&gt;Research questions: (1) How can we explain the development of monopolies&lt;br /&gt; on SNS markets? (2) Are monopolies possibly temporarily limited? (3) What&lt;br /&gt; does this mean for competition (or antitrust) law?&lt;br /&gt; Results: (1) Direct network effects (number of users) and indirect network&lt;br /&gt; effects (complementary products and advertising) facilitate the development&lt;br /&gt; of one standard und thus a quasi-monopoly. There is empirical evidence that&lt;br /&gt; there are indeed standards on SNS markets (Facebook in the U.S. and Germany,&lt;br /&gt; Vkontakte in Russia). (2) The standards seem to be temporary monopolies.&lt;br /&gt; Yet, no innovator survived as a standard. (3) The dominant market&lt;br /&gt; position of a standard on the SNS market alone is no problem for Article 102&lt;br /&gt; of the Treaty on the Functioning of the European Union (TFEU). But if a&lt;br /&gt; dominant company tries to immunize its leading position (e.g. by mergers&lt;br /&gt; and acquisitions), such behavior can be scrutinized. On two-sided markets, it&lt;br /&gt; would be possible to define the relevant market much broader than the small&lt;br /&gt; SNS market. When we consider the whole online advertising market as relevant,&lt;br /&gt; many of Article 102&amp;rsquo;s problems are avoided.&lt;/p&gt;</dct:description>
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