The Dilemma And Solution In The Definition Of The “relevant Market” Of Antitrust Law In The Internet Field

With the development and innovation of the network communication technology, the scale of the Internet Industry continuously extends. From instant messaging, online shopping and Internet entertainment to online interactive learning, online business and online public release. Internet has deeply integrated into the development of the economy and almost all aspects of our life, which fundamentally change the economic development pattern and the life style. With the expansion of the Internet Industry, some giants in this filed have come into the notice of the antitrust law enforcement authority. In traditional anti-monopoly cases, defining a relevant market where the involved product or conduct exists is a crucial premise to judge the establishment of monopoly or not. In the implementation of the antitrust law in traditional industries, we’ve got feasible principles and methods in the relevant market definition after decades of exploration and development. However, there are some unconventional traits in the Internet industry which subversively change the traditional mode of production, operation and sales. So that, the principles and methods adapted to traditional industries are faced with dilemma which make huge challenge to the implementation of antitrust law in the Internet industry. From the famous case “U.S. v. Microsoft” in America to case “Qihoo v. Tencent” in China, the domestic and overseas law enforcement agencies constantly grope for the methods of relevant market definition in the Internet industry. Those unconventional traits in the Internet industry make the economic aspects related to relevant definition much complicated. What’s more, there are inherent limitations and lag nature in the legislation technology of antitrust law. At present, the relevant market definition in the Internet industry is still in the primary stage in both the theory and practice. The author of this thesis try to propose solutions by analyzing specific performance of the dilemma of the relevant market definition in the Internet industry, attaching domestic and overseas cases concerning antitrust implementation in the Internet industry.This thesis consists of three parts:The first chapter summarize the basal knowledge of the relevant market definition. The first section states the significance of relevant market definition in the implementation of antitrust law. The second section states the traditional principles and methods of relevant market definition.The second chapter specifically analyses the dilemma of relevant market definition in the Internet industry by analyzing domestic and overseas cases. The first section introduces those unconventional traits in the Internet industry, there are twosided market, fuzzy boundaries, network effects and virtual feature. The second section states dilemmas which the Internet industry has bring to the relevant market definition, including the dilemma in selection of the provisional market, the dilemma in substitutable analysis, the challenge to the SSNIP test and the dilemma in the geography market definition. The third section proposed a thought to “skip” the relevant market definition.The third chapter then proposes solutions of the dilemma in the relevant market definition of the Internet industry. The first section introduces a one-side market framework trying to solve the problem when selecting the provisional market. The second section introduces a method based on source of profit, a sales way test and the transformation of SSNIP test-the product performance test/SSNDQ test. The third section focuses on the geography market definition, dividing the Internet market into a thorough online market and online&offline market, then proposes solutions respectively. The forth section analyzes the feasibility of the thought to “skip” the relevant market definition.