Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software Firms
The omnipresence of software firms is triggering substantial antitrust concerns, calling into question the adequacy of existing regulatory frameworks. This study explores this pivotal concern in the context of the software industry, which is characterized by profound network externalities among cust...
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| Format: | Article |
| Language: | English |
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Korean Marketing Association
2025-07-01
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| Series: | Asia Marketing Journal |
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| Online Access: | https://amj.kma.re.kr/journal/vol27/iss2/2/ |
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| author | Gwona Ko Boreum Choi Wooje Cho Young Bong Chang |
| author_facet | Gwona Ko Boreum Choi Wooje Cho Young Bong Chang |
| author_sort | Gwona Ko |
| collection | DOAJ |
| description | The omnipresence of software firms is triggering substantial antitrust concerns, calling into question the adequacy of existing regulatory frameworks. This study explores this pivotal concern in the context of the software industry, which is characterized by profound network externalities among customers and a rapid pace of innovation. Our study used the event study methodology on data from 252 antitrust cases involving the U.S. Federal Trade Commission and U.S. Department of Justice from 2000 to 2022, which revealed important insights into the differentiated effects of U.S. antitrust announcements on the market value of software firms. Although antitrust announcements generally have a negative impact on market value, software firms in this study displayed notable resilience compared with other sectors within information technology, such as hardware. Of interest is the negative relationship identified between R&D intensity and abnormal returns, which challenges traditional perspectives on the role of R&D in market competition and risk mitigation. |
| format | Article |
| id | doaj-art-910745693a1b476a9e165442cbdca32f |
| institution | DOAJ |
| issn | 1598-7868 2765-6500 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Korean Marketing Association |
| record_format | Article |
| series | Asia Marketing Journal |
| spelling | doaj-art-910745693a1b476a9e165442cbdca32f2025-08-20T03:15:42ZengKorean Marketing AssociationAsia Marketing Journal1598-78682765-65002025-07-01272106116https://doi.org/10.53728/2765-6500.1647Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software FirmsGwona Ko0https://orcid.org/0009-0003-2160-5076Boreum Choi1https://orcid.org/0000-0002-7944-3597Wooje Cho2https://orcid.org/0000-0001-6148-5820Young Bong Chang3https://orcid.org/0000-0002-8958-4203Graduate School of Business, Seoul National University, Seoul, KoreaSchool of Business Administration, University of Seoul, Seoul, KoreaGraduate School of Business, Seoul National University, Seoul, KoreaBusiness School, Sungkyunkwan University, Seoul, KoreaThe omnipresence of software firms is triggering substantial antitrust concerns, calling into question the adequacy of existing regulatory frameworks. This study explores this pivotal concern in the context of the software industry, which is characterized by profound network externalities among customers and a rapid pace of innovation. Our study used the event study methodology on data from 252 antitrust cases involving the U.S. Federal Trade Commission and U.S. Department of Justice from 2000 to 2022, which revealed important insights into the differentiated effects of U.S. antitrust announcements on the market value of software firms. Although antitrust announcements generally have a negative impact on market value, software firms in this study displayed notable resilience compared with other sectors within information technology, such as hardware. Of interest is the negative relationship identified between R&D intensity and abnormal returns, which challenges traditional perspectives on the role of R&D in market competition and risk mitigation.https://amj.kma.re.kr/journal/vol27/iss2/2/antitrustevent studysoftwarenetwork effectr&dregulatory risk |
| spellingShingle | Gwona Ko Boreum Choi Wooje Cho Young Bong Chang Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software Firms Asia Marketing Journal antitrust event study software network effect r&d regulatory risk |
| title | Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software Firms |
| title_full | Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software Firms |
| title_fullStr | Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software Firms |
| title_full_unstemmed | Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software Firms |
| title_short | Market Power Versus Regulation Forces: The Impact of Antitrust Regulation on Software Firms |
| title_sort | market power versus regulation forces the impact of antitrust regulation on software firms |
| topic | antitrust event study software network effect r&d regulatory risk |
| url | https://amj.kma.re.kr/journal/vol27/iss2/2/ |
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