A Study On The Abuse Of Dominant Market Position On The Context Of Internet Economy

With the development of the information technology, internet economy has become an important force to promote China’s economic development. It really changes the traditional economic model. It has brought great challenges to antitrust issues. There have been many international attentions on the antitrust issues of the internet economy in the early20th century. However the Conflict Between360and Tencent began in the second half of2010China makes us study on how to define the abuse of dominant market position in the internet economy. The point is the internet economy has many characteristics which differs from the traditional economy, then it will be essential to study on these characteristics and their impact on the definition of the abuse of dominant market position.In order to explore the problem of defining the abuse of dominant market position in the internet economy, the article will firstly define the concept and characteristics of the internet economy. The relevant market and the dominant market position will also be defined. The basic method for these analysis is to compare the general definition in the traditional economy with the influence of characteristics of the internet economy and to carefully study the conflict between360and Tencent. Then there will be a conclusion that how to better define the abuse of the dominant market position in the internet economy.Firstly the article defines the internet economy as an internet-based economy whose income comes from the internet or related products. And the characteristics of the internet economy is summarized as network externality effect, positive feedback mechanism, consumer lock-in effect and high fixed costs but low marginal costs. Secondly, after comparing the general definition with those characteristics of the internet economy, this article summarized the recommendations for defining the abuse of the dominant market position which is to fully consider the network externalities and use the principle of reasonableness.