Regulating Over-the-Top Service Providers in Two-Sided Content Markets: Insights from the Economic Literature

Communications & Strategies, Forthcoming

13 Pages Posted: 14 Oct 2015

See all articles by Jan Kraemer

Jan Kraemer

University of Passau; Center on Regulation in Europe (CERRE)

Michael Wohlfarth

University of Passau

Multiple version iconThere are 2 versions of this paper

Date Written: October 14, 2015

Abstract

In this paper we scrutinize the request to regulate access to the OTTs’ essential services bottleneck based on insights from the economic literature. First, we delineate that OTTs may pursue a one-sided or two-sided business model, which makes a fundamental difference with respect to the underlying economics. Focusing on two-sided content markets, we then discuss three scenarios that differ in the degree of competition that OTTs may face, ranging from potential competition over access-based competition (via access regulation) to actual platform competition. Although access regulation may have merits, it is very questionable whether such regulation should be pursued due to a high uncertainty concerning the economic benefits and necessity as well as practical legal problems.

Keywords: Over-the-Top Services, Two-sided Markets, Access Regulation, Telecommunications, Internet

JEL Classification: K23, L51, L96

Suggested Citation

Kraemer, Jan and Wohlfarth, Michael, Regulating Over-the-Top Service Providers in Two-Sided Content Markets: Insights from the Economic Literature (October 14, 2015). Communications & Strategies, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2674081

Jan Kraemer

University of Passau ( email )

Chair of Internet and Telecommunications Business
Dr.-Hans-Kapfinger-Str. 12
Passau, D-94036
Germany
+498515092580 (Phone)
+498525092582 (Fax)

HOME PAGE: http://www.kraemer.biz

Center on Regulation in Europe (CERRE) ( email )

Rue de l'Industrie 42
Brussels, 1040
Belgium

Michael Wohlfarth (Contact Author)

University of Passau ( email )

Chair of Internet and Telecommunications Business
Dr.-Hans-Kapfinger-Str. 12
Passau, DE 94032
Germany
+49 (851) 509 - 2585 (Phone)
+49 (851) 509 - 2582 (Fax)

HOME PAGE: http://wohlfarth.org

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