Applying the Dynamic Competition Approach to Zero-Priced Markets

Abstract

This article examines competition law analysis on zero-priced markets within the scope of dynamic competition model. In this regard, following the proliferation of the Internet-based services, zero-priced markets have become an important part of our ecosystem. To that end, given that the current competition law tools and assessment methods depend heavily on the existence of positive prices in the relevant markets, zero-priced markets—as a fast-spreading concept—pose several complexities for competition law practitioners in particular in the fields of relevant product market definition and competitive assessment in such markets. In this regard, recent case law and scholarly analyses clearly indicate that there is a need for implementing a dynamic competition law model when dealing with zero-priced markets by taking their specific characteristics into consideration. In this article, we will discuss the effectiveness of the traditional competition law tools and present alternative competition law approaches for evaluating zero-priced markets in a dynamic manner.

Keywords: zero-priced markets, antitrust, dynamic competition, Turkish Competition Authority

JEL Classification: K21, L40