The images or other third party material in this book are included in the book's Creative Commons license, unless indicated otherwise in a credit line to the material. But as discussed above, there is no evidence that the access to such funding was inequitable and that the market for financing was not competitive and had aberrations. The combination of below-cost pricing, recoupment, elimination of competition, and domination by one or two firms, makes this scenario appear suspiciously like predatory pricing.This is where the economics of two-sided platforms tells us that there are other considerations at work.

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The erosion of the older operators’ shares was ‘more attributable to the expansion of the consumer base in the market than them being deprived of the demand which they were serving before’.The CCI then gave a nice summary of the economics of network effects in two-sided platformsThe CCI refused to be swayed by the informants citing of its order in In conclusion, based on collective consideration of the facts that the competitive process in the relevant market is unfolding, market is growing rapidly, effective entry has taken place thereby leading to gradual decline in [Ola’s] market share, entry barriers are not insurmountable, there exist countervailing market forces that constrain the behaviour of OP and the nature of competition in dynamic, innovation-driven markets, the Commission is of the considered view that [Ola’s] dominance in the relevant market remains unsubstantiated.



EndNote First, there may be diseconomies of scale due to congestion. Therefore, it cannot be said definitively that there is an abuse inherent in the business practices adopted by operator such as respondents [Uber,] but the size of discounts and incentives show that there are either phenomenal efficiency improvements, which are replacing existing business models with the new business models or there could be an anticompetitive stance to it.COMPAT reopened the case, ordering an investigation by the Director General (DG) of the CCI. Second, the scope for one firm to take over the market is limited if users find it convenient to patronize more than one platform, or if they can easily switch to a rival platform, as with credit cards, nightclubs, newspapers or television channels.
Click the OK button, to accept cookies on this website. It amends the 1914 Clayton Antitrust Act.Antitrust Laws: Keeping Healthy Competition in the Marketplace

Competition: In a market economy, competition is the means by which prices are kept low and greed is checked.

Moreover, it was their penetrative pricing strategy that facilitated them to garner high market shares in short span of time as well as develop the networks to a size that could provide sufficient positive externalities to the participants of the network.The CCI concluded that ‘it is difficult to determine with certainty the long-term impact of this pricing strategy as the market is yet to mature’, and expressed its reluctance ‘to interfere in a market which is yet to fully evolve’. But this price may have an exclusionary effect even if it is not below cost. Aberdeen Journals were fined £1.3million.‘Aberdeen Journals deliberately incurred losses in a persistent campaign to remove its only direct rival from the market.

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