Handbook on the Economics of the Internet
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Handbook on the Economics of the Internet

Edited by Johannes M. Bauer and Michael Latzer

As the single most important general purpose technology of recent times, the Internet is transforming the organization, competitive structure and business models of the private, the public and non-profit sectors. In 27 original chapters, leading authors discuss theoretical and applied frameworks for the study of the economics of the Internet and its unique economics as a global information and communications infrastructure. They also examine the effects of the Internet on economic transactions (including social production, advertising, innovation, and intellectual property rights), the economics and management of Internet-based industries (including search, news, entertainment, culture, and virtual worlds), and the effects of the Internet on the economy at large.
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Chapter 9: Competition and antitrust in Internet markets

Justus Haucap and Torben Stühmeier


The rapid rise, enduring growth and success of Internet markets and e-commerce platforms have spurred a lively and sometimes heated debate among academics and policy-makers: do Internet markets foster competition or are they prone to concentration, possibly to the point of monopolization? Competition economists and lawyers vigorously discuss the peculiarities of these markets and whether traditional rules and interpretations of competition law are sufficient to deal with potential new competition problems. The cases against search engine Google have received most public and academic attention, closely followed by the e-book case against Apple. In addition, numerous cases concerning vertical restraints in online sales have recently been brought before European courts. These vertical restraints include across-platform parity agreements (APPAs), which are a special form of a most-favored customer clause, general bans on online sales or bans on particular platforms, dual pricing systems, and selective and exclusive distribution systems. This chapter starts with a brief discussion of the peculiarities of online markets and then discusses recent antitrust cases related to the Internet.

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