Innovation & Competition in the Digital Network Economy: A Legal & Economic Assessment on Multi-tying Practice & Network Effects
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.
|Update Frequency||As Needed|
|Product Line||Kluwer Law International|
Table of Contents. Abbreviations. Figures and Tables. 1. Introduction. 2. Backgrounds and Case Reference. I. New Digital Network Economy: Digital Media System and Instant Messaging System. II. Global Case References. 3. Korea Microsoft Case: Multiple Tyings in the Digital Media System and Instant Messaging System. I. Korean Legal System: the Monopoly Regulation and Fair Trade Act on Tying Practices. II. Factual Background of the Korea Microsoft Case. III. KFTC Decision (2005). IV . Appeal of the KFTC Decision to the KFTC. V. Appeal of the KFTC Decision to the Court. 4. An Assessment on the Multi-tying Practice. I. Purposes and Methods of Legal and Economic Assessment on the Korea Microsoft Case. II. Microeconomic Assessment. III. Macroeconomic Assessment. IV. Assessment on Efficiencies of Multi-tying Practice. V. Assessment on Corrective Remedies. VI. Transjudicial Availability of the Assessment on Microsoft’s Multi-tying Practice. 5. Conclusion. Appendices. References. Glossary. Index.