Identify and Briefly Explain the Anti-Competitive Possibilities Inherent in Net Marketplaces

Net Marketplaces
Name:
Institution:
Course:
Date:
Net Marketplaces
As more industries embrace the net market places, there are some elements of caution that the players should take into consideration (Pressey & Ashton, 2007). Other than the fact that these are just online platforms that provide the buyers and the sellers a chance to come together and make transactions there are some anti-competitive possibilities that are inherent within these marketplaces.
One of the possibilities is that, these markets can collude on pricing by providing some of the firms with the opportunity for the same (Competition Issues in Electronic Commerce, 2010). In a case where the owners of a net market place are large companies that are key in a given industry, there are chances that they may decide amongst themselves that they are going to pay for inputs at a certain price.
It is also common that the members of the net market may decide that they are going to reduce the amount of purchases they are willing to buy from the suppliers. Ideally, in this way they are controlling the market forces of demand (Pressey & Ashton, 2007). The suppliers will then have to sell at a lower market price relative to the reduced demand for their commodities.<...