Author: Sachin Bhatnagar, Student at Masters in Law (Corporate and Business Laws), Gujarat National Law University, Gandhinagar in the Batch of 2023-24.
ABSTRACT
The video game industry stands as a dynamic and rapidly evolving sector within the broader digital entertainment landscape. In recent years, one notable phenomenon shaping the competitive dynamics of this industry is the prevalence of platform exclusivity agreements. These agreements, which grant exclusive rights to distribute or release video games on specific gaming platforms, have garnered increased attention due to their potential impact on competition and consumer welfare. Platform exclusivity agreements often create significant barriers to entry for potential competitors, limiting consumer choice and inhibiting market access for alternative products or services. Moreover, these agreements can reinforce the dominance of incumbent platforms, exacerbating their market power and deterring potential entrants from challenging their position.
This paper aims to dissect the impact of such agreements on market dynamics and competition. Through a comprehensive analysis of case studies, legal frameworks, and economic theories, we delve into the mechanisms through which platform exclusivity agreements can stifle competition and innovation. The significance of this study lies in its potential to shed light on how platform exclusivity agreements may impact market competition, consumer choice, and innovation within the Indian video game industry. Moreover, it aims to contribute to the ongoing discourse surrounding the application of competition law in emerging digital markets, where traditional regulatory frameworks may need to adapt to address novel challenges posed by digital platforms and online ecosystems.
Through a comprehensive analysis of relevant case law, regulatory guidelines, and industry practices, this research seeks to provide insights into the complex interplay between platform exclusivity agreements and competition law within the Indian video game industry. By doing so, it aims to inform policymakers, industry stakeholders, and legal practitioners about the implications of such agreements and potential avenues for regulatory intervention to promote competition and consumer welfare in this rapidly evolving sector.
Keywords: Platform Exclusivity Agreements. Anticompetitive Effects, Market Dynamics, Consumer Welfare, Regulatory Intervention.
