Innovation & Competition in the Digital Network Economy: A Legal & Economic Assessment on Multi-tying Practice & Network Effects

Jung Wook Cho

This section selects books on themes related to competition laws and economics. This compilation does not attempt to be exhaustive but rather a survey of themes important in the area. The survey usually covers publication over the last three months after publication of the latest issue of Concurrences. Publishers, authors and editors are welcome to send books to catherine.prieto@univ-paris1.fr for review in this section.

Through an in-depth analysis of the Korea Fair Trade Commission (KFTC) case—which led to a December 2005 decision, currently under appeal at the Seoul High Court, condemning three fundamental tying practices embedded in Microsoft’s global business strategy—the author clearly establishes the precise nature of Microsoft’s anticompetitive practices, complete with clear technical descriptions of the underlying applications and digital media systems. The discussion develops valuable guidelines on such core issues as the following:

• network effect, tipping effect, and lock-in effect

• separability of Microsoft’s tied and tying products

• forced purchase by consumers of multiple tied products

• Microsoft’s reinforcement of market entry barriers

• Microsoft’s “normal business practice” defense

• cumulative damage to consumers’ interests

The book’s ultimate legal and economic assessment clarifies ways in which government competition authorities can select from globally available options on a case-by-case basis, enforce re-pricing measures, avoid belated remedies, and continuously monitor new types of anticompetitive conduct.

Author

  • Korea Fair Trade Commission (Seoul)

Quotation

Jung Wook Cho, Innovation & Competition in the Digital Network Economy: A Legal & Economic Assessment on Multi-tying Practice & Network Effects, December 2007, Concurrences N° 4-2007, Art. N° 110345

Publisher Wolters Kluwer

Date 11 July 2007

Number of pages 312

ISBN 9789041125743

Visites 83

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