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Panel III – Theories in Digital Markets
Ryan Struve
October 11, 2019
Views expressed do not necessarily reflect those of the United
States Department of Justice.
2
Overview of U.S. Monopolization Law
• Section 2 of the Sherman Act
– “Monopolize, or attempt to monopolize”
– “any part of the trade or commerce”
• Elements of Proof
– Monopolization
• Monopoly power
• “Willful acquisition or maintenance of that power”
– Attempted monopolization
• Anticompetitive conduct
• Specific intent to monopolize
• Dangerous probability of success
3
Are Our Tools Out of Date?
• Platforms have existed since before antitrust laws
–Newspaper advertising
• Digital platforms have been analyzed under existing laws for decades
–Microsoft Section 2 case
–Google/Yahoo search agreement
4
Theories of Harm in Digital Platforms
• Important to distinguish between different types of
platforms
–Advertising-funded
–True platform model
• Nature of the illegal restraint depends on the nature of the
platform – follow the money
5
Alternatives to Tackling Dominance
• Proving dominance and exclusion can be difficult and takes a
significant amount of time
• Other avenues of enforcement available
–Dominance-facilitating acquisitions or agreements
–Behavior in standards setting bodies

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New Technology – Old Theories of Harm? – Ryan Struve, US DOJ - October 2019 OECD-AGCM Workshop on Abuse of Dominance in Digital Markets

  • 1. Panel III – Theories in Digital Markets Ryan Struve October 11, 2019 Views expressed do not necessarily reflect those of the United States Department of Justice.
  • 2. 2 Overview of U.S. Monopolization Law • Section 2 of the Sherman Act – “Monopolize, or attempt to monopolize” – “any part of the trade or commerce” • Elements of Proof – Monopolization • Monopoly power • “Willful acquisition or maintenance of that power” – Attempted monopolization • Anticompetitive conduct • Specific intent to monopolize • Dangerous probability of success
  • 3. 3 Are Our Tools Out of Date? • Platforms have existed since before antitrust laws –Newspaper advertising • Digital platforms have been analyzed under existing laws for decades –Microsoft Section 2 case –Google/Yahoo search agreement
  • 4. 4 Theories of Harm in Digital Platforms • Important to distinguish between different types of platforms –Advertising-funded –True platform model • Nature of the illegal restraint depends on the nature of the platform – follow the money
  • 5. 5 Alternatives to Tackling Dominance • Proving dominance and exclusion can be difficult and takes a significant amount of time • Other avenues of enforcement available –Dominance-facilitating acquisitions or agreements –Behavior in standards setting bodies