Motivated by the recent antitrust investigations concerning Google, we develop a leverage theory of tying in two-sided markets. In a setting where the "one monopoly proÖt result" holds otherwise, we uncover a new channel through which tying allows a monopolistic Örm in one market to credibly leverage its monopoly power to another competing market if the latter is two-sided. In the presence of the nonnegative price constraint, tying provides a mechanism to circumvent the constraint in the tied

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... oduct market without inviting an aggressive response by the rival Örm. We identify conditions under which tying in two-sided markets is proÖtable and explore its welfare implications. In addition, we show that our model can be applied more widely to any markets in which sales to consumers in one market can generate additional revenues that cannot be competed away due to non-negative price constraints.