Study On The Relevant Market Definition Of Digital Platform

How can antitrust enforcement proceed smoothly is a constant concern now. One of thetough tasks for courts judging these cases is the definition of relevant market. We can see atransformational change in Chinese courts’ attitude towards this question from simplyskipping this step in Baidu case to having an in-depth analysis in Tecent case. However, thedigital platform adopted by most internet giants still presents many distinguishable featuresfrom the traditional economics, so the courts finds the market being more obscure anduncertain. This article will focus on this problem, starts with the industry characteristics,analysis the relevant market definition on typical digital platforms, and summarize the generalanalytical steps for market definition in this industry.In addition to the introductory, this article is composed of four parts.The first part of this article is a general introduction about the relevant market definitionof digital platforms. It clarifies the definition of digital platform and summarizes thecharacteristics of digital platforms. Then it analyzes the possible impact posed by thesefeatures to the relevant market definition. After this, it introduces the relevant market, whichincludes the tools for market definition and the role of market definition in antitrustenforcement.The second part illustrates the method of defining market in a typical digital platform-search engine platform. It concludes that the market of search engine should be defined in theframework of two-sided market after an analysis of the features of search engine. Then, itproceeds with the definition in two distinctive market—the users’ market and the advertisers’market, measuring the competitive constraints posed by all possible substitutes. Also, itredefines the market in Baidu case.The third part basically follows the same path as second part. It analyzes the market ofinstant messaging platform, starting with the dilemmas faced by the court in360v. Tecent. Tobe specific, these dilemmas are the innovation of product, the free economic of internet, theplatform competition theory. Then it follows by a detailed analysis and a possible response toeach dilemma. And in the end of this part, this article criticizes the market definition in360v.Tecent.The fourth part is the summary of this article. It organizes as follows, first it points outthe attentions should be paid to platform economy, and how to define market definition in a platform industry. Then it proceeds to the tools of market definition and suggests reasonableadjustments in SSNIP. And it also advocates the protection of innovation incentive of firms inthe market definition.