Predatory Pricing in Two-Sided Markets: A Brief Comment

Abstract

Over the past few years, there has been a burgeoning literature on two-sided markets and economic understanding of such markets has improved hugely. Less attention has, however, been paid to how competition policy should be applied in two-sided markets.

This short note does not attempt to provide a comprehensive analysis of this issue, but merely presents a brief comment on the implications of two-sided market theory for one possible abuse of a dominant position under Article 82 of the EC Treaty: predatory pricing.

Keywords: multi-sided platforms, two-sided markets, two-sided platforms, antitrust, antitrust analysis, predatory pricing