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This paper explores how recessions affect industry evolution and competitive dynamics in two-sided markets, breaking through the high entry barriers in place, allowing competitors with a superior price-performance proposition to improve their market performance, and even leapfrog the market leader. It extends traditional perspectives on platform competition that emphasize challenges associated with complementors, ecosystem governance, technology performance, and innovation, including an often forgotten but omnipresent and relevant factor: the macroeconomic context surrounding firms and industries. Our study informs platform literature and management practice in turbulent environments and is supported by empirical evidence on the smartphone operating system industry. [ABSTRACT FROM AUTHOR]