Self-preferencing and foreclosure in digital markets: Theories of harm for abuse cases

Massimo Motta

International Journal of Industrial Organization, 2023, vol. 90, issue C

Abstract: Antitrust agencies all over the world have been investigating large digital platforms for practices which may constitute an abuse of dominance. Here I discuss practices (including ‘self-preferencing’ and denial or degradation of interoperability) which can be interpreted as foreclosure in vertically-related or complementary markets. I discuss, in particular, a few high-profile cases involving Amazon, Apple, Facebook and Google. I focus on possible theories of harm for such cases and show that both original simple models and well-established economic theories (adapted or interpreted) provide a rationale for anti-competitive foreclosure.

Keywords: Self-preferencing; Abuse of dominance; Monopolization; Exclusionary practices; Digital platforms; Two-sided markets; Vertical foreclosure (search for similar items in EconPapers)
JEL-codes: D40 K21 L10 L40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:90:y:2023:i:c:s0167718723000553

DOI: 10.1016/j.ijindorg.2023.102974

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