Platform businesses and market definition

Abstract

ABSTRACT Since the recognition of the platform business model, the following dichotomy has been largely accepted – analyze the conduct of a transaction platform in a single market including both customer groups and the conduct of a non-transaction platform in separate markets based on customer groups. In this article we argue that a single market should be defined to assess the effects of conduct engaged by a nontransaction platform business. Such an approach is consistent with the purposive nature of market definition, recognizes that conduct (anti-competitive or otherwise) has implications for the whole platform business and avoids conduct being incorrectly classified.