Multisided markets and the challenge of incorporating multisided considerations into competition law analysis

Abstract

Since the seminal paper of Rochet and the Nobel Prize laureate Tirole in 2003, the theory of multisided markets has garnered considerable academic attention. The practical application of the theory remains, however, challenging. This article seeks to bring together the key features of multisided market economics and identify the key principles, which can affect practical enforcement. Following a consideration of the economic and legal challenges involved in the analysis of multisided platforms, the article reviews two case studies — the European Court of Justice’s recent MasterCard decision concerning multilateral interchange fees and the Dutch Competition Authority’s review of the European Directories — Truvo Nederland merger — and showcases the associated enforcement challenges.