Relevant Markets and Market Power of Mobile Apps(2022.12)

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Relevant Markets and Market Power of Mobile Apps (2022.12)

KAWAGUCHI, Kohei (Assistant Professor, Department of Economics, Hong Kong University of Science and Technology and Visiting Researcher of the Competition Policy Research Center)
KURODA, Toshifumi (Associate Professor, Department of Economics, Tokyo Keizai University and Visiting Researcher of the Competition Policy Research Center)
SATO, Susumu (Assistant professor, Institute of Economic Research, Hitotsubashi University and Visiting Researcher of the Competition Policy Research Center)

Abstract	File(PDF)
In this article，we discuss methods for defining relevant markets and evaluating the market power of mobile apps and mobile Operating Systems (OSs), which are necessary for evaluating the market power of digital platforms such as Apple and Google in the mobile app economy. To this end, we first provide an overview of the mobile app economy. Second, we summarize antitrust cases involving mobile apps and mobile OSs and discuss issues related to the market definition for mobile apps and mobile OSs. Third, building on the theoretical and empirical literature, we discuss the behaviors of the leading players in the mobile app economy, such as mobile app users, advertisers, and developers. Lastly, we propose empirical methods for defining relevant markets and evaluating the market power of mobile apps and mobile OSs using data on the demand of consumers and advertisers for mobile apps.	CPDP-89-3-E(PDF:388KB)

Abstract

File(PDF)

　
In this article，we discuss methods for defining relevant markets and evaluating the market power of mobile apps and mobile Operating Systems (OSs), which are necessary for evaluating the market power of digital platforms such as Apple and Google in the mobile app economy. To this end, we first provide an overview of the mobile app economy. Second, we summarize antitrust cases involving mobile apps and mobile OSs and discuss issues related to the market definition for mobile apps and mobile OSs. Third, building on the theoretical and empirical literature, we discuss the behaviors of the leading players in the mobile app economy, such as mobile app users, advertisers, and developers. Lastly, we propose empirical methods for defining relevant markets and evaluating the market power of mobile apps and mobile OSs using data on the demand of consumers and advertisers for mobile apps.

CPDP-89-3-E(PDF:388KB)