Assignment Task
QUESTION 1.
Google Inc has been subject to three enquiries from the European Commission, on the matters of Google AdSense, Google Shopping, and the Android operating system. You have been asked to clarify the cases for use in an analyst’s report on the future relationship between the EU and Google, and have been asked to provide brief, but clear and succinct answers on some of the background to the case.
1) Explain briefly each of the four stages from market definition test to final determination of fines or damages that a competition case will go through.
2) How did each of these stages apply to the Google Shopping case? (10 marks, maximum 400 words)
3) The Android case has been described as a controversial verdict. What objections do observers have to the final judgement and to what extent do they have merit?
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Get Help Now!QUESTION 2.
Rupt Bank’s latest report on the Streaming Video on Demand industry states that competitors in the industry , such as Netflix, “are able to realise significant network effects as a result of their presence in the industry.” Your employer is sceptical about this, and has asked you to give them a brief, reasoned argument why this might not be correct. What would you tell them?( 35 marks, 800 words maximum).
QUESTION 3
One of the longest running controversies in the economics of technology is that between Paul David on the one hand and Liebowitz and Margolis on the other, and concerns the question of the degree to which one can be locked into an inferior technological choice. Give a summary of the two arguments and a conclusion as to which you believe to be correct.
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