The problem of defining the relevant market in the case of multilateral markets – based on the example of digital entrepreneurs operating in two-sided markets

Abstract

The article analyses the process of defining the relevant market, with reference to digital entrepreneurs who operate on two-sided markets. The article presents a description of two-sided markets, including their basic features, such as network effect and price structure. These aspects are then analysed in the context of three factors of the relevant market: relevant product market, relevant geographic market, and temporal relevant market. The article leads to the conclusion that a temporal relevant market should be determined each time when considering online multiside markets. The article also analyses the so-called gatekeepers, that is entrepreneurs creating markets on which they also define the market conditions. Moreover, they do not always compete on the markets which they have created. In the case of gatekeepers, the article leads to the conclusion that the legal construction of abuse of market position should be sufficient; however, further regulation of gatekeepers may be necessary in the future.