CPI (10)1

In this issue: The Spring/Summer 2014 issue of Competition Policy International presents a lively discussion regarding effective institutional designs for competition regimes. More than 100 jurisdictions around the globe now have competition laws. But despite this proliferation, there’s no consensus on the optimal structure for an authority. While differences across countries probably dictate that there […]

The Two Sides of the Cartes Bancaires Ruling: Assessment of the Two-Sided Nature of Card Payment Systems Under Article 101(1) TFEU and Full Judicial Scrutiny of Underlying Economic Analysis

Frederic Pradelles, Andreas Scordamaglia-Tousis, Jan 30, 2015 The European Court of Justice recently delivered two seminal rulings in Groupement des Cartes Bancaires v Commission and MasterCard v Commission. These two judgments brought much awaited clarification to the application of Article 101 of the Treaty on the Functioning of the European Union (“TFEU”) in two important […]

Letter from the Editor – Autumn 2014

David Evans, Jan 30, 2015 This issue completes the tenth year of Competition Policy International. During this time the CPI Journal has published 303 articles and our companion publication, CPI’s Antitrust Chronicle, has published another 1,138. Taken together, CPI’s complete works demonstrate—perhaps more effectively than anywhere else—the vibrancy, diversity, and increasing importance that antitrust issues […]

Platform Competition in Two-Sided Markets

Jean-Charles Rochet, Jean Tirole, Jan 30, 2015 Many if not most markets with network externalities are two-sided. To succeed, platforms in industries such as software, portals and media, payment systems and the Internet, must “get both sides of the market on board.” Accordingly, platforms devote much attention to their business model, that is, to how […]

An Instant Classic: Rochet & Tirole, Platform Competition in Two-Sided Markets

Richard Schmalensee, Jan 30, 2015 The press release announcing that Jean Tirole had been awarded the 2014 Nobel Prize in Economic Sciences noted that he had “made important theoretical research contributions in a number of areas.” One of his most important contributions was the discovery and pioneering analysis of multi-sided platforms (“MSPs”) in his 2003 […]

Object Restrictions and Two-sided Markets in EU Competition Law after Cartes Bancaires

Renato Nazzini, Ali Nikpay, Jan 30, 2015 On September 11, 2014, the Court of Justice overturned the judgment of the General Court upholding the European Commission’s decision in Groupement des Cartes Bancaires. This paper contends that the Court of Justice’s judgment is significant in two respects: First, it attempts to clarify apparent ambiguities and discrepancies […]

Antitrust Issues in Two-Sided Network Markets: Lessons from In Re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation

Alan Sykes, Jan 30, 2015 In 2013, I served as a court-appointed expert in consolidated class and individual plaintiff antitrust litigation against Visa and Mastercard in the Eastern District of New York. The litigation involved a challenge to default interchange fees established by Visa and Mastercard, and to certain network rules imposed on affiliated merchants. […]

Economic Considerations Raised by the Federal Trade Commission’s Investigation of Google’s Search Practices

Robert Levinson, Michael Salinger, Jan 30, 2015 In January 2013, the Federal Trade Commission closed its nineteen-month antitrust investigation into Google’s search practices. The primary issue in that investigation was Google’s use of Universal Search results. The argument that Google’s display of Universals violated the antitrust laws appeared to rest on a theory of vertical […]

Price Restrictions in Multi-sided Platforms: Practices and Responses

Benjamin Edelman, Julian Wright, Jan 30, 2015 In connecting buyers to sellers, some two-sided platforms require that sellers offer their lowest prices through the platform, disallowing lower prices for direct sales or sales through competing platforms. In this article, we explore the various contexts where such restrictions have arisen, then consider effects on competition, entry, […]