An overview of the online marketplace

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Presentation at the conference "Online retail: the changing landscape and ramifications for competition policy", British Institute of International and Comparative Law, London, December 2, 2008 (http://www.biicl.org/events/view/-/id/330/)

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An overview of the online marketplace

  1. 1. 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
  2. 2. Transaction costs fall: The «  Long Tail  » <ul><li>Blockbuster: <10,000 video titles </li></ul><ul><li>Your bookshop usually offers only the most popular books </li></ul><ul><li>Netflix: >100,000 titles </li></ul><ul><li>¼ of Amazon’s profits come from titles that are not available in your bookshop </li></ul>Long Tail graph from Chris Anderson
  3. 3. Tracking <ul><li>Location </li></ul><ul><li>Anonymous ( ≈) consumer </li></ul><ul><li>Loyalty programs </li></ul><ul><li>. </li></ul><ul><li>Traffic </li></ul><ul><li>Registered user </li></ul><ul><li>Smart matching technologies </li></ul><ul><li>Price comparison </li></ul>
  4. 4. Network options <ul><li>Exclusive distribution, Selective distribution, Franchise… </li></ul><ul><li>Refusal to sell online </li></ul><ul><li>No need to have distributors </li></ul><ul><li>Online platforms </li></ul><ul><li>Affiliation </li></ul>
  5. 5. What about the consumers ? <ul><li>EC encourages the development of electronic commerce </li></ul><ul><li>Electronic commerce must not be isolated from the rest of the internal market [ECJ, Oct. 16, 2008] </li></ul><ul><li>“ [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] </li></ul>

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