Axel Gautier, Patrice Bougette and Frederic Marty discuss Google Shopping in their recently published paper “Business Models and Incentives: For an
Effects-Based Approach of Self-Preferencing?”
As an appetizer, the authors highlight four key points:
- We examine the self-preferencing strategy in the light of recent work in the field of Industrial Organisation by focusing on business models and incentives.
- When a platform changes its business model, moving from a zero-price model to a hybrid model in which remuneration is provided on several sides, its incentives change.
- A dual platform has different incentives than a zero-price platform and this duality affects competition in the complementors’ markets impacting consumers’ surplus and welfare.
- The appropriate treatment of self-preferencing is discussed, ranging from a per se prohibition to an effects-based approach, including the ones of the Draft DMA.