David Park, William Rooney, Apr 19, 2007
The term two-sided market sounds strange to the antitrust lawyer´s ear. Antitrust markets typically are not described as having sides. They consist of a relevant product or set of products, cover a geographic area, and include transactions between buyers and sellers at a particular level of distribution. Although most market participants buy inputs and sell outputs, they usually buy in the market for the input and sell in the market for the output, not compete in a two-sided market. Still, the growing and informative literature on two-sided platforms, businesses, and markets has much to offer antitrust law. That literature emphasizes that the demand for otherwise distinct products or services may in fact be linked and that a competitive-effects analysis cannot myopically ignore that linkage. To the extent that the two-sided market literature improves competitive-effects analysis, it improves the fundamental purpose of antitrust law. This essay briefly discusses the importance of acknowledging linked demand for, and relationships among, otherwise distinct products or services, as recommended by the two-sided market literature, with respect to competitive-effects assessments and market definition. We also observe that recognizing linked demand and interrelationships among products or services facilitates the application of legal rules in antitrust cases.
Links to Full Content
Featured News
Senators Urged to Expedite Gail Slater’s Confirmation as DOJ Antitrust Chief
Feb 11, 2025 by
CPI
Former Michigan Asphalt Executive Pleads Guilty in Bid-Rigging Scheme
Feb 11, 2025 by
CPI
Ballard Spahr Expands Litigation Team with Addition of Antitrust Attorney in Seattle
Feb 11, 2025 by
CPI
Portuguese Court Overturns €225 Million Fine for Banking Collusion Due to Statute of Limitations
Feb 11, 2025 by
CPI
Binance and SEC Request Stay in Crypto Lawsuit Amid New Regulatory Task Force
Feb 11, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – International Criminal Enforcement
Jan 23, 2025 by
CPI
The Antitrust Division’s Recent Work to Combat International Cartels
Jan 23, 2025 by
Emma Burnham & Benjamin Christenson
Information Sharing: The New Frontier of U.S. Antitrust Enforcement
Jan 23, 2025 by
Brian P. Quinn, Casey Kovarik & Michael Tubach
The Key Role of Guidelines on Exchanges of Information Among Competitors and the Divergent Transatlantic Paths
Jan 23, 2025 by
Rosa Abrantes-Metz & Albert Metz
Leniency, Whistleblowers, and Compliance
Jan 23, 2025 by
Richard Powers, Tara O’Malley & Cory Gordon