Google - An attempt to define the market

This paper examines the market definition of multi-sided markets for the purpose of an initial assessment of a dominant market position, illustrated by the practical example of the universal search engine Google. To date, there are no suitable methods for defining the market scope of multi-sided markets. The author of this paper therefore presents a modified demand-side market concept in the form of a questionnaire, which takes into account the interdependence of markets by examining the effects of indirect network effects on switching costs. This provides the user with a qualitative framework that enables them to gain an overview of how multi-sided markets function and the competitive relationships within them, from which competition policy implications can then be derived. The practical application of the modified demand-side market concept to the universal search engine Google has shown that the company is subject to competitive pressure and therefore does not hold a dominant market position.