An overview of the online marketplace Online retail: the changing landscape and ramifications for competition policy British Institute of International and Comparative Law, London, 12.2.2008 Cédric Manara [www.cedricmanara.com] , EDHEC Business School – LegalEDHEC Research Centre

Transaction costs fall: The « Long Tail » Blockbuster: <10,000 video titles Your bookshop usually offers only the most popular books Netflix: >100,000 titles ¼ of Amazon’s profits come from titles that are not available in your bookshop Long Tail graph from Chris Anderson

Blockbuster: <10,000 video titles

Your bookshop usually offers only the most popular books

Netflix: >100,000 titles

¼ of Amazon’s profits come from titles that are not available in your bookshop

Tracking Location Anonymous ( ≈) consumer Loyalty programs . Traffic Registered user Smart matching technologies Price comparison

Location

Anonymous ( ≈) consumer

Loyalty programs

.

Traffic

Registered user

Smart matching technologies

Price comparison

Network options Exclusive distribution, Selective distribution, Franchise… Refusal to sell online No need to have distributors Online platforms Affiliation

Exclusive distribution, Selective distribution, Franchise…

Refusal to sell online

No need to have distributors

Online platforms

Affiliation

What about the consumers ? EC encourages the development of electronic commerce Electronic commerce must not be isolated from the rest of the internal market [ECJ, Oct. 16, 2008] “ [S]ome Commission competition cases – such as the recent iTunes case – have cast doubt on whether the opportunities provided by the internet are being fulfilled or are hindered by barriers created in the off-line world without consideration of their on-line effects” [EC, Opportunities in Online Goods and Services: Issues paper]

EC encourages the development of electronic commerce

Electronic commerce must not be isolated from the rest of the internal market [ECJ, Oct. 16, 2008]

“ [S]ome Commission competition cases – such as the recent iTunes case – have cast doubt on whether the opportunities provided by the internet are being fulfilled or are hindered by barriers created in the off-line world without consideration of their on-line effects” [EC, Opportunities in Online Goods and Services: Issues paper]