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Reassessing competition concerns in electronic communications markets

Author

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  • Peitz, Martin
  • Valletti, Tommaso
Abstract
Central features of today's electronic communications markets are complementarities between the different layers of the value chain, substitutability between some applications, network effects in the provision of content and services, two-sided business models that partly involve indirect revenue generation (such as advertising and data profiling), and a patchwork of regulated and unregulated segments of the market. This complexity requires a fresh look at the market forces shaping the industry and a rethinking of market definitions and of the assessment of market power. This article presents the state of play in European electronic communication markets, with a particular emphasis on the recent development of 'over the tops'. We also use a stylised model of an electronic communications market to draw some central lessons from economic theory and to elaborate on market definition and market power.

Suggested Citation

  • Peitz, Martin & Valletti, Tommaso, 2014. "Reassessing competition concerns in electronic communications markets," ZEW Discussion Papers 14-101, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:14101
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Fourie, Helanya & de Bijl, Paul W.J., 2018. "Race to the top: Does competition in the DSL market matter for fibre penetration?," Telecommunications Policy, Elsevier, vol. 42(9), pages 778-793.
    2. Martin Peitz, 2024. "Digital Attention Intermediaries," CRC TR 224 Discussion Paper Series crctr224_2024_520, University of Bonn and University of Mannheim, Germany.
    3. Sung, Nakil & Kim, Minchang, 2023. "COVID-19 and changes in content usage behavior: The case of South Korea," Telecommunications Policy, Elsevier, vol. 47(1).
    4. Schweitzer, Heike & Fetzer, Thomas & Peitz, Martin, 2016. "Digitale Plattformen: Bausteine für einen künftigen Ordnungsrahmen," ZEW Discussion Papers 16-042, ZEW - Leibniz Centre for European Economic Research.
    5. Xia, Jun, 2017. "China’s telecommunications evolution, institutions, and policy issues on the eve of 5G: A two-decade retrospect and prospect," Telecommunications Policy, Elsevier, vol. 41(10), pages 931-947.
    6. Avilés, Judith Mariscal, 2020. "A tale of two reforms: Telecommunications reforms in Mexico," Telecommunications Policy, Elsevier, vol. 44(7).
    7. Wellmann, Nicolas, 2017. "OTT-messaging and mobile telecommunication: A joint market? - An empirical approach," DICE Discussion Papers 256, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    8. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Krämer, Jan & Frübing, Stefan & Kesler, Reinhold & Saam, Marianne, 2016. "Metastudie zum Fachdialog Ordnungsrahmen für die Digitale Wirtschaft: Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 147040.
    9. Rossi, Maria Alessandra, 2022. "The advent of 5G and the non-discrimination principle," Telecommunications Policy, Elsevier, vol. 46(4).
    10. Wellmann, Nicolas, 2019. "Hello . . . Are You Still There? An Empirical Analysis How Market Structure Affects Quality of Mobile Networks," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203579, Verein für Socialpolitik / German Economic Association.
    11. Russo, Francesco & Stasi, Maria Luisa, 2016. "Defining the relevant market in the sharing economy," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 5(2), pages 1-13.
    12. Frias, Zoraida & Pérez Martínez, Jorge, 2018. "5G networks: Will technology and policy collide?," Telecommunications Policy, Elsevier, vol. 42(8), pages 612-621.
    13. Wellmann, Nicolas, 2017. "OTT-Messaging and Mobile Telecommunication: A Joint Market? An Empirical Approach," 28th European Regional ITS Conference, Passau 2017 169503, International Telecommunications Society (ITS).
    14. Yannis Katsoulacos & Svetlana Avdasheva & Svetlana Golovanova, 2021. "Determinants of the (Slow) Development of Effect-Based Competition Enforcement: Testing the Impact of Judicial Review on the Choice of Legal Standards by Competition Authorities," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 103-122, March.
    15. Wellmann, Nicolas, 2019. "Are OTT messaging and mobile telecommunication an interrelated market? An empirical analysis," Telecommunications Policy, Elsevier, vol. 43(9).
    16. Matinmikko, Marja & Latva-aho, Matti & Ahokangas, Petri & Seppänen, Veikko, 2018. "On regulations for 5G: Micro licensing for locally operated networks," Telecommunications Policy, Elsevier, vol. 42(8), pages 622-635.
    17. D׳Annunzio, Anna & Reverberi, Pierfrancesco, 2016. "Co-investment in ultra-fast broadband access networks: Is there a role for content providers?," Telecommunications Policy, Elsevier, vol. 40(4), pages 353-367.
    18. Eric Darmon & Thomas Le Texier & Zhiwen Li & Thierry Pénard, 2019. "Multimarket Contact and Platform Competition: Reassessing the Mutual Forbearance Hypothesis," Economics Working Paper Archive (University of Rennes & University of Caen) 2019-07, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    19. Peitz, Martin, 2020. "Economic policy for digital attention intermediaries," ZEW Discussion Papers 20-035, ZEW - Leibniz Centre for European Economic Research.
    20. Krämer, Jan & Wohlfarth, Michael, 2018. "Market power, regulatory convergence, and the role of data in digital markets," Telecommunications Policy, Elsevier, vol. 42(2), pages 154-171.
    21. Glass Victor, 2019. "The Net Neutrality Debate is Outdated: Time for a New Wider View," Review of Network Economics, De Gruyter, vol. 18(4), pages 243-276, December.

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    More about this item

    Keywords

    telecommunications; OTT; relevant market; two-sided markets; market power;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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