The starting point in any type of competition analysis is the definition of the “relevant” market. There are two fundamental dimensions of market definition: (i) the product market, that is, which products to group together and (ii) the geographic market, that is, which geographic areas to group together. Market definition takes into account both the demand and supply considerations. On the demand side, products must be substitutable from the buyer’s point of view. On the supply side, sellers must be included who produce or could easily switch production to the relevant product or close substitutes. Market definition generally includes actual and potential sellers, that is, firms that can rapidly alter their production processes to supply substitute products if the price so warrants. The rationale for this is that these firms will tend to dampen or curb the ability of existing firms in the market to raise price above the competitive level. The location of buyers and sellers will determine whether the geographic market is local, regional, national or international. If markets are defined too narrowly in either product or geographic terms, meaningful competition may be excluded from the analysis. On the other hand, if the product and geographic markets are too broadly defined, the degree of competition may be overstated. Too broad or too narrow market definitions lead to understating or overstating market share and concentration measures.
Source: OECD
In a section 27 order delivered in September 2018, the Competition Commission of India, while penalising Esaote for abusing its dominant position, may have laid down a landmark precedent in respect of market definition in India. The majority noted that the relevant product market in the instant case was the market for ‘Dedicated Standing/Tilting MRI…
The products and services surrounding mobile phones (e.g. mobile apps, browsers, search engines) have already proved to be a separate marketing tool for undertakings. This has triggered and created new challenges for competition law enforcement. Indeed, the competition authorities have had to deal with defining new relevant product markets and evaluating their market dynamics. In…
Following the Parliament’s approval in early March, the Federal States Council, Germany’s second legislative chamber, has approved the most recent reform to German competition law on March 31, 2017. The new law will enter into force upon publication in the German official journal, presumably end of April/beginning of May. The reform was triggered by the…
“Hope Smiles from the threshold of the year to come, Whispering ‘it will be happier’…” Introduction This quote from Alfred, Lord Tennyson might – I sincerely hope after recent events – be applicable to life generally in Brussels in 2017. But not so – I fear – in the world of EU merger control. It…
On February 3, 2014, the Federal Court of Appeal overturned the Competition Tribunal’s 2013 decision dismissing the Commissioner of Competition’s abuse of dominance allegations against the Toronto Real Estate Board (TREB) and referred the case back to the Tribunal. In so doing, the Court held that the Competition Act’s abuse of dominance provisions could potentially…
In our annual forecast of the year ahead for Canadian competition and foreign investment review law, the Davies Competition Law and Foreign Investment Group outlines the “Top 10” key issues and trends to watch for this year. 1. A Green Light for Class Actions by Indirect Purchasers The Supreme Court of Canada issued an important…
Here is an item on an important decision of Canada’s Competition Tribunal written by my partners George Addy, Sandra Forbes, John Bodrug and Jim Dinning. It is especially relevant for trade associations – Mark On April 15, 2013, the Canadian Competition Tribunal released its decision dismissing the Commissioner of Competition’s application against the Toronto Real…
In contrast to e.g. the UK Office of Fair Trading, the European Commission so far has not applied UPP-type approaches in phase I merger enquiries. However, a Commission submission to the OECD earlier this year indicates that it is keeping its options open. This post discusses frequently asked questions regarding the concept of UPP and…
On 15 May 2012, Advocate-General Mazák delivered his long awaited Opinion to the European Court of Justice in the long-running AstraZeneca litigation. Practitioners hoping for an opinion that tempered some of the more extreme dicta of the General Court were to be disappointed. Advocate-General Mazák recommended that the General Court’s judgment be upheld in its…
The feud between the Chinese Internet companies Qihoo 360 Technology Co., Ltd. (‘Qihoo 360’) and Tencent Inc. (‘Tencent’) has been simmering for nearly two years. This article spotlights the facts and major issues of the dispute. The Facts Tencent runs QQ, the most popular instant messaging (‘IM’) service in the mainland China with over 700…
