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Mobile Phone Regulation: The Effects Of Prohibiting Handset Bundling In Finland

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  • Thomas W Hazlett
  • Sarah Oh
  • Brent Skorup

Abstract

Vertical restrictions have theoretically ambiguous efficiency effects. Marketplace evidence is, therefore, required to reveal the presence of anticompetitive foreclosure. The bundling of mobile phones with cellular network service offers one such market test. One EU member, Finland, prohibited tying arrangements for mobile service and mobile handsets in wireless broadband markets, and then cleanly ended this prohibition in April 2006. We compare the growth in Finnish third-generation (3G) uptake against other European markets using quarterly data from first quarter 2006 through fourth quarter 2012. An output effects model adjusting for market-specific factors suggests 3G penetration growth in Finland increased substantially following market reform.

Suggested Citation

  • Thomas W Hazlett & Sarah Oh & Brent Skorup, 2018. "Mobile Phone Regulation: The Effects Of Prohibiting Handset Bundling In Finland," Journal of Competition Law and Economics, Oxford University Press, vol. 14(1), pages 65-90.
    • Handle: RePEc:oup:jcomle:v:14:y:2018:i:1:p:65-90.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhx030
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    Cited by:

    1. Jong-Hee Hahn & Youngjun Lee, 2023. "Sequential Pricing in Successive or Bilateral Monopolies with Separate Consumer Groups," Korean Economic Review, Korean Economic Association, vol. 39, pages 495-516.
    2. Alex Kim & Maximilian Muhn & Valeri Nikolaev, 2023. "From Transcripts to Insights: Uncovering Corporate Risks Using Generative AI," Papers 2310.17721, arXiv.org.

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