The Regulation of Facebook, Google and Twitter

 Facebook, Google and Twitter operate in two-sided markets. Consequently CRE  believes  the ultimate decision dealing with a governmental action directed toward any of the aforementioned companies should based upon an in-depth examination of two-sided markets. 

More specifically we are of the view  that:  whether a two-sided market behaves like a monopolistic market, a competitive one, or something altogether  different depends in large part on the homing properties of its users; we are of the view that symmetric single homing markets exhibit monopolistic properties and  asymmetric  multi-homing markets come across very competitive.


If we are correct, then it is imperative that the FTC examine the unique properties of two -sided markets prior to initiating enforcement action in these markets. Failure to do so will bring about the dire consequences predicted by Professors Evans and  Schmalenesse:


Antitrust analysis, tools, and techniques require modification when two-sided platforms account for a significant portion of supply. Failure to account for the consequences of interlinked demand between the two sides can lead antitrust analysis into serious error.


For these reasons we believe it imperative that the FTC conduct an open forum on two-sided markets to allow the public and stakeholders to express their views on this important  matter.


The public is also encouraged to express their views in the space provided below.


Source: Center for Regulatory Effectiveness





Leave a Reply

Your email address will not be published.

Please Answer: *