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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    <subfield code="a">Information markets;</subfield>
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    <subfield code="a">Social Network Services;</subfield>
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    <subfield code="a">Facebook;</subfield>
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    <subfield code="a">Competition law;</subfield>
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    <subfield code="d">19th–21st May 2015</subfield>
    <subfield code="g">ISI 2015</subfield>
    <subfield code="a">Re:inventing Information Science in the Networked Society. Proceedings of the 14th International Symposium on Information Science (ISI 2015)</subfield>
    <subfield code="c"> Zadar, Croatia</subfield>
    <subfield code="n">Session 6: Digital Society and Literacy</subfield>
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    <subfield code="u">Heinrich Heine University Düsseldorf, Germany</subfield>
    <subfield code="a">Fietkiewicz, Kaja J.</subfield>
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    <subfield code="u">Heinrich Heine University Düsseldorf, Germany</subfield>
    <subfield code="a">Stock, Wolfgang G.</subfield>
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    <subfield code="u">Heinrich Heine University Düsseldorf, Germany</subfield>
    <subfield code="a">Baran, Katsiaryna S.</subfield>
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    <subfield code="a">Monopolies on Social Network Services (SNS) Markets and Competition Law</subfield>
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    <subfield code="a">&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;</subfield>
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