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Does Google Leverage Market Power Through Tying And Bundling?

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  • Benjamin Edelman

Abstract

I examine Google's pattern and practice of tying to leverage its dominance into new sectors. In particular, I show how Google used these tactics to enter numerous markets, to compel usage of its services, and often to dominate competing offerings. I explore the technical and commercial implementations of these practices and identify their effects on competition. I conclude that Google's tying tactics are suspect under antitrust law.

Suggested Citation

  • Benjamin Edelman, 2015. "Does Google Leverage Market Power Through Tying And Bundling?," Journal of Competition Law and Economics, Oxford University Press, vol. 11(2), pages 365-400.
    • Handle: RePEc:oup:jcomle:v:11:y:2015:i:2:p:365-400.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhv016
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    Citations

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    Cited by:

    1. Choi, Jay Pil & Jeon, Doh-Shin, 2016. "A Leverage Theory of Tying in Two-Sided Markets," TSE Working Papers 16-689, Toulouse School of Economics (TSE), revised Oct 2019.
    2. Jens Prüfer & Christoph Schottmüller, 2021. "Competing with Big Data," Journal of Industrial Economics, Wiley Blackwell, vol. 69(4), pages 967-1008, December.
    3. Sun Keke, 2018. "Bundling, Vertical Differentiation, and Platform Competition," Review of Network Economics, De Gruyter, vol. 17(1), pages 1-23, March.
    4. Pouyet, Jérôme & Trégouët, Thomas, 2016. "Vertical Mergers in Platform Markets," CEPR Discussion Papers 11703, C.E.P.R. Discussion Papers.
    5. Graef, Inge & Prüfer, Jens, 2021. "Governance of data sharing: A law & economics proposal," Research Policy, Elsevier, vol. 50(9).
    6. Bartelt, Nadja, 2018. "Bundling in Internetmärkten: Ökonomische Besonderheiten, Wettbewerbseffekte und Regulierungsimplikationen," Ilmenau Economics Discussion Papers 120, Ilmenau University of Technology, Institute of Economics.
    7. Feng Zhu & Qihong Liu, 2018. "Competing with complementors: An empirical look at Amazon.com," Strategic Management Journal, Wiley Blackwell, vol. 39(10), pages 2618-2642, October.
    8. Carlotta MARIOTTO & Marianne VERDIER, 2015. "Innovation and Competition in Internet and Mobile Banking: an Industrial Organization Perspective," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 129-146, 3rd quart.
    9. Matthew S. Hanchard, 2020. "Digital Maps and Senses of Security: The Influence of a Veracious Media on Urban Life," Urban Planning, Cogitatio Press, vol. 5(4), pages 301-311.
    10. Robert F. Easley & Hong Guo & Jan Krämer, 2018. "Research Commentary—From Net Neutrality to Data Neutrality: A Techno-Economic Framework and Research Agenda," Information Systems Research, INFORMS, vol. 29(2), pages 253-272, June.
    11. Dipankar Das & Vivek Sharadadevi Jadhav, 2021. "Essay on Non-linear Pricing in E-commerce," Working Papers 2021-209, Madras School of Economics,Chennai,India.
    12. Lamoreaux, N., 2019. "The Problem of Bigness: From Standard Oil to Google," Cambridge Working Papers in Economics 1963, Faculty of Economics, University of Cambridge.
    13. Budzinski, Oliver, 2016. "Aktuelle Herausforderungen der Wettbewerbspolitik durch Marktplätze im Internet," Ilmenau Economics Discussion Papers 103, Ilmenau University of Technology, Institute of Economics.

    More about this item

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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