As the report observes, rapid developments in internet technologies are radically changing business models in many sectors around the globe. Online platforms, which are at the centre of digitalisation, create numerous benefits. However, this is in a sense a "double-edged sword," as rapid changes also bring new risks and challenges. The TCA acknowledges in its report that the rapid growth of e-commerce in
The first section of the report paints a general picture of retail e-commerce activities in
The second part of the report examines the global development of e-marketplaces and the business models of
The third section of the report examines the current situation of e-marketplaces in
In light of the above it is understood that online channels and physical stores respond to different needs of consumers, and accordingly, these two channels do not constitute an alternative to each other from the consumer perspective. Within the framework of the survey findings and explanations given above, it is observed that in the eyes of consumers, multi-category e-marketplaces are differentiated from physical stores and other online sales channels. Consequently, this segregation is evident in all age groups, but it increases even more towards lower age groups. Considering that the lower age groups will become the main consumer group over time, it is possible to predict that the aforementioned distinction will continue to increase in the future. The data provided in this section of the report reveals that multi-category marketplaces do not experience competitive pressure either from physical stores or from the sellers' own e-commerce sites.
The fourth section of the report includes the basic economic characteristics of e-marketplaces. In this context, the market structure and operational features that contribute to the market power of e-marketplaces-such as network externalities, multiple access, economies of scale and scope, multilateralism and their "data-driven-ness"-are evaluated. Market disruptions such as high barriers to entry, expansion and the tendency to evolve into a single market are also addressed. The report states that the market structure that contributes to the market power of e-marketplaces and the functioning of the market are based on the platform business model and economy. Platforms have an economic structure and operation that distinguishes them from traditional markets. If the definition of "platform" is concretised in terms of e-marketplaces, it is possible to define e-marketplaces as multilateral platforms that bring together different user groups, such as potential advertisers, as well as sellers and buyers/consumers, and mediate or facilitate transactions between these groups.
The fifth part of the report analyses the possible competition problems arising from e-marketplaces. For this purpose, concerns were evaluated under three main headings, which are: problems that may hinder cross-platform competition; problems that may hinder intra-platform competition; and consumer concerns. Problems that may hinder cross-platform competition are subdivided into (i) the most-favoured-customer condition, (ii) exclusivity, and (iii) applications limiting multiple access on both the consumer and seller side. Problems hindering intra-platform competition, on the other hand, are categorised as (i) discrimination among vendors operating in the marketplace, (ii) marketplace product and vendor rankings, (iii) data collected by marketplaces, (iv) associated services offered by marketplaces, (v) unfair commercial practices, and (vi) the tendency of marketplace sellers to form (hub-and-spoke) cartels. Moreover, competition problems with respect to consumer concerns are designated as (i) price-based concerns, (ii) consumer addiction and loyalty practices, and (iii) data-based concerns.
The last section of the report is devoted to policy recommendations for prominent competition concerns in line with the findings, determinations and evaluations of the sector inquiry. In this context, it was considered that it would be appropriate to propose three measures to address competition concerns: (i) to review and update secondary legislation in order to eliminate uncertainties in the implementation of current competition law rules in terms of platforms and strengthen the application; (ii) to implement a "Platform Code of Conduct" on the basis of "objectivity", "transparency", "openness" and "foreseeability" in order to ensure that the market produces fair results for all participants and to serve as a reference in bilateral relations for the asymmetric bargaining power that dominates the overall market; and (iii) to determine "gatekeepers" and implement the behaviours that they are obliged to avoid with an ex-ante legal regulation.
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