Abstract

The aftermarkets occupy a dependent position in relation to the primary product market. The textbook examples of this kind of dependence are the car market and the service market, the printer market and the cartridge market, the shaving stick market and razor cartridge market, the markets for software products and their updates. In such cases, manufacturers in so-called primary markets may restrict competition in the aftermarkets through dealer licensing or through consumer contract terms related to warranty service. The study is relevant due to the emergence of new scenarios of anti-competitive behaviors and agreements (for example, restricting access to personal data of primary product owners – to the Big Data of a car engine’s control sensors – limits the possibility to enter the aftersales service market for new players). In this context, the Internet of Things and the digitalization of production chains give primary market participants the opportunity to control data flows and access conditions, which determines exclusive access to aftermarkets associated with the risk of monopolization. The purpose of the study is to identify the sources of anti-competitive behavior in the markets for the primary product and after-sales service (including consumables and components). The objectives of the study include: identifying the sources of antitrust law violations in the markets for the primary product and after-sales service; analyzing international and Russian antitrust practice in relation to the markets for the primary product and aftermarkets. The research methodology includes models of market analysis for various industries, quantitative methods of antitrust analysis, tools of the new institutional economic theory. The conclusions of the study describe the properties of the markets for the primary product and aftermarkets, which are significant for the antitrust regulation of such markets, and provide a theoretical justification of the need to use refined methods of quantitative analysis for the purposes of antitrust law enforcement, taking into account the specifics of the primary markets and aftermarkets.   

Abstract

Studying the existence and type of barriers to entry is an integral part of competition analysis conducted by antitrust authorities in different countries. As a result, competition authorities in different countries have accumulated a lot of knowledge on this matter, which can be shared between regulators to define best practices and identify the weaknesses of the approaches used. This preprint compares the approaches to defining and measuring barriers to entry used by the antitrust authorities in Russia, USA, EU, Germany, Spain and Australia, which makes it possible to identify the shortcomings of the approach used by FAS of Russia and foreign antitrust regulators. Among the shortcomings of the studied approaches, the author highlights lack of consistency in identifying entry barriers, which is exceptionally noticeable in terms of barrier level analysis. Also, the cases reviewed by competition authorities lack quantitative assessment of entry barriers, which shows the gap between the ongoing academic research and law enforcement practice. The Federal Antimonopoly Service of Russia stands out in comparison to foreign competition authorities, because it often conducts only a formal definition of the entry barriers, limiting the description to a simple enumeration of market barriers or even completely skipping this part of the analysis. As a result, the Russian antitrust authority often draws unsubstantiated conclusions when assessing market entry barriers.