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Abuse of Dominance in
Digital Markets
Dr. Wen-Jen Tsay, Commissioner
Chinese Taipei Fair Trade Commission
8th December, 2020
Global Forum on Competition
Theories of Harm
• Abuse of monopolistic power:
 Abuse by obstruction:eliminate horizontal competitors or potential competitors or
block them from maintaining or expanding their market power
 Abuse by exploitation:take advantage of its market power to obtain profits beyond
the level of competition
• mobile device app download platform case :
 Google LLC removed the informer’s apps available on Google Play without warning
and the reason.
 The conduct is NOT abuse by obstruction:
 Google LLC and the informer were not horizontal competitors.
 The conduct is NOT abuse by exploitation:
 Removing apps could not increase the revenue of Google Play.
 Quantity and types of apps was the key to the success of a mobile operating system.
 The record of correspondence between Google LLC and the informer :
 The informer had violated the policy of Google Play on a number of occasions prior to
the removal of its apps or termination of its account.
 Google LLC did give the informer an opportunity to make corrections before removing
the apps of the informer.
 After the app removal, Google LLC also accepted the appeal from the informer and
notified the informer of the handling result.
1
Digital Economy Competition Policy Team
• Created in April 2017
• Competition issues of digital markets:
definition of relevant market
evaluation of market power
resale price maintenance
most favored nation clauses
predatory pricing
territory restrictions
false on-line advertisements
• Seminars related to digital markets:
sharing economy
e-commerce
big data
platform economy
• Focus on the competition issues of technology giants GAFA in 2020
2

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Abuse of Dominance in Digital Markets – Chinese Taipei – December 2020 OECD discussion

  • 1. Abuse of Dominance in Digital Markets Dr. Wen-Jen Tsay, Commissioner Chinese Taipei Fair Trade Commission 8th December, 2020 Global Forum on Competition
  • 2. Theories of Harm • Abuse of monopolistic power:  Abuse by obstruction:eliminate horizontal competitors or potential competitors or block them from maintaining or expanding their market power  Abuse by exploitation:take advantage of its market power to obtain profits beyond the level of competition • mobile device app download platform case :  Google LLC removed the informer’s apps available on Google Play without warning and the reason.  The conduct is NOT abuse by obstruction:  Google LLC and the informer were not horizontal competitors.  The conduct is NOT abuse by exploitation:  Removing apps could not increase the revenue of Google Play.  Quantity and types of apps was the key to the success of a mobile operating system.  The record of correspondence between Google LLC and the informer :  The informer had violated the policy of Google Play on a number of occasions prior to the removal of its apps or termination of its account.  Google LLC did give the informer an opportunity to make corrections before removing the apps of the informer.  After the app removal, Google LLC also accepted the appeal from the informer and notified the informer of the handling result. 1
  • 3. Digital Economy Competition Policy Team • Created in April 2017 • Competition issues of digital markets: definition of relevant market evaluation of market power resale price maintenance most favored nation clauses predatory pricing territory restrictions false on-line advertisements • Seminars related to digital markets: sharing economy e-commerce big data platform economy • Focus on the competition issues of technology giants GAFA in 2020 2