United States: Platform Economics and Mergers
Global Competition Review, Digital Markets Guide, Edition 2, November 2022
In the second edition of Global Competition Review’s Digital Markets Guide, Analysis Group Managing Principal Brian S. Gorin and Vice President Maria Garibotti contributed the “United States: Platform Economics and Mergers” chapter, exploring the increased regulatory and legislative scrutiny that digital platform mergers are receiving in the US. In particular, the authors focus on the Request for Information on Merger Enforcement (RFI) issued jointly in 2022 by the Federal Trade Commission (FTC) and the Department of Justice (DOJ).
After noting the “continued regulatory and legislative scrutiny of merger activity by large firms whose businesses can be analysed as two-sided or multi-sided platforms,” Mr. Gorin and Dr. Garibotti briefly explain the economics of two-sided platforms and the issues that arise for antitrust analysis. They then use the themes outlined in the FTC and DOJ RFI, including summaries of selected commentary received by the agencies, to explore the question of whether the unique characteristics of digital businesses warrant special treatment in M&A review.