ABSTRACT

Many of the high-technology industries that attract the attention of competition policy have the fundamental properties of network industries. Competition policy issues and analyses pertaining to network industries become far clearer and more closely analogous to those arising in more conventional settings when the relevant markets that are appropriate to the network setting are delineated. This chapter emphasizes bundling generally have powerfully beneficial effects on consumers and on the quality of marketplace offerings. It highlights the public policy decision whether to allow bundling should focus on the market power of the enterprise who wishes to engage in such bundling, and on the overall competitive conditions in the relevant markets for the components of the bundle. An important set of related considerations arise in competition analyses of internet industry issues. While reputation and brand names can be considered in competition analyses and that as a result a relevant market for competitive advantage over internet audiences can be an insightful tool.