The rise of big tech - Platform competition and antitrust in two-sided markets
| dc.contributor | Aalto University | en |
| dc.contributor | Aalto-yliopisto | fi |
| dc.contributor.advisor | Murto, Pauli | |
| dc.contributor.author | Rekola, Anna | |
| dc.contributor.department | Taloustieteen laitos | fi |
| dc.contributor.school | Kauppakorkeakoulu | fi |
| dc.contributor.school | School of Business | en |
| dc.date.accessioned | 2024-08-11T16:00:50Z | |
| dc.date.available | 2024-08-11T16:00:50Z | |
| dc.date.issued | 2024 | |
| dc.description.abstract | This literature review addresses the complexities of regulating Big Tech companies operating in two-sided markets. The analysis focuses on understanding the key characteristics of competition in the market, and how traditional antitrust approaches should be adapted in the context. The findings suggest that network effects are key determinants in platforms’ price and non-price strategies. This has implications for antitrust policy, which should take into account the pricing structure and network effects across sides when investigating anti-competitive practices. Overall, when large network effects are present, a tendency for market monopolisation arises. However, low entry costs and heterogeneous consumer preferences make room for smaller, differentiated competitors. Therefore, to maintain contestability in the market, it is essential for competition authorities to ensure market entry is not impeded. The paper also examines the numerous mergers involving Big Tech, noting that while mergers have significant implications for competition, innovation, and consumer surplus, the effects are case-specific, and no uniform policy for or against mergers can be taken. However, the review suggests that competition authorities should revise merger notification thresholds to ensure their ability to evaluate Big Tech mergers more frequently. The role of big data as a potential source of incumbency advantage is also explored. Questions on the value, substitutability and rareness of data are at the center of the debate, but no clear consensus on the effect of data is reached. The paper calls for further research into data's impact on competition and the possible need for updated antitrust standards to address emerging challenges. | en |
| dc.format.extent | 61 + 5 | |
| dc.identifier.uri | https://aaltodoc.aalto.fi/handle/123456789/129840 | |
| dc.identifier.urn | URN:NBN:fi:aalto-202408115408 | |
| dc.language.iso | en | en |
| dc.location | P1 I | fi |
| dc.programme | Economics | en |
| dc.subject.keyword | two-sided markets | en |
| dc.subject.keyword | antitrust | en |
| dc.subject.keyword | big data | en |
| dc.subject.keyword | mergers | en |
| dc.subject.keyword | platform competition | en |
| dc.title | The rise of big tech - Platform competition and antitrust in two-sided markets | en |
| dc.type | G2 Pro gradu, diplomityö | fi |
| dc.type.ontasot | Master's thesis | en |
| dc.type.ontasot | Maisterin opinnäyte | fi |
| local.aalto.electroniconly | yes | |
| local.aalto.openaccess | no |
