Tying of “Free Goods” in Digital Platform Markets

As dominant platforms offer related services and expand into adjacent markets, there are serious concerns for anticompetitive tying that may serve to extend their market power to other markets. In this article, I review recent theoretical developments in the leverage theory of tying in relation to digital platform markets where goods are often provided for “free.” With zero pricing, the monopolist of the primary good may be unable to appropriate a rival firm’s efficiencies through the pric