A Research Of Antitrust Definition Of Relevant Market In Two-Sided Markets

In the traditional theory of anti-monopoly law, the definition of relevant market has been one of the key step in the antitrust analysis, referred to as the starting point of the competitive analysis by many scholars.The current international has not yet formed a unified methods and standard of the relevant market definition, and antitrust case itself is more complex, all of this makes the definition of relevant market became the various countries' one of the problems in the judicial practice.And with the development of economic theory, especially in recent years the rise of the two-sided market theory, relevant theories and methods of the definition of relevant market has suffered huge challenges.In this paper, first of all, the author introduces some basic theories of two-sided market, emphatically analyzes and researches the unique difference of two-sided markets,which makes bilateral market be different from single market.Then,based on the discussion of the challenge wet met when defining the relevant market using the traditional analysis method in the two-sided markets,the author analysis the correction of traditional analysis method and some novel definition methods presented by the academia. Finally the author makes a further thinking on the definition of the relevant market in the the perspective of two-sided market classification.Apart from the introduction and conclusion, this paper consists of four chapters.The main content of the first part includes the basic theory of two-sided markets and relevant antitrust problems.On the basis of introduction of the meaning of the bilateral market,mainly analyzes four characteristics of the two-sided markets,namely "the interdependent demand for platform between the bilateral user ", "cross network externalities", "the complexity of the bilateral users belonging" and "the asymmetry of the price structure of bilateral market ".Then, in consideration of the perspective of this article writing, the author makes a more detailed introduction about the classification of bilateral market and put forward his view.Finally this chapter dose some preparation for below as simply analyzing some typical problems in the process of the antitrust analysis in the two-sided markets.The second part mainly talks about two-sided markets challenges the traditional way of the relevant market definition.Generally speaking, the relevant market definition method is divided into qualitative analysis and quantitative analysis of two kinds, the former represented by alternative analysis, the latter represented by SSNIP.However, these two kinds of analysis method is based on the traditional single market thinking, it is difficult to apply to two-sided markets built on bilateral thinking.Between bilateral users, for example,there exists contradiction of understanding on the function of the products and services provided by the platform, therefore alternative analysis can't directly apply to the bilateral market;For example, cross network effects make bilateral user less price-sensitive, bilateral market price structure is not symmetrical, free products abound, when using SSNIP test method,these questions make the anti-monopoly enforcement authority be difficult to accurately select benchmark price.Carrying on the part of the content,the third part introduces the correction of the traditional analysis Whether reducing the price increases of SSNIP test, or product performance testing, or profit model testing, all of them have responded to the challenge brought to the relevant market definition by bilateral market, and obtained a certain practical effect.However, we are difficult to accurately measure the influence brought to the definition of relevant market by the features of two-sided markets, therefore these works inevitably have some defects.For example, different types of users in bilateral market response to the rise in price differently.The performance of the product material change depends on the consumer's subjective attitude, product performance itself is difficult to be quantified;Defining relevant market on the basis of profit source easily ignore the market segment.On the base of above content,the author takes a new look at the definition of relevant market in the role of antitrust analysis in the fourth part.On the basis of the classification of the bilateral market,the author respectively talks about necessity of defining relevant market in different two-sided markets.On the consideration of saving judicial resources,improving law enforcement efficiency and economic efficiency,it is necessary to study the definition methods of relevant market on the point of simplifying the framework of the relevant market definition.Through analyzing the necessity of defining relevant market in different two-sided markets,the author removes the bilateral markets types where monopoly power exists difficultly,focusing the limited judicial resources on the market.This part through the analysis on different types of two-sided markets, the necessity of the relevant market which is more vulnerable by the monopoly power,and hoping that this will provide beneficial reference for simplifying the analysis of relevant market definition framework.