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 November 2022, the European Commission published its draft revision of the Market Definition Notice. This is the first time the Notice was revised since its adoption in 1997. The draft revised Notice on Market Definition is an impressive piece of work, which makes clear strides in updating the Market Definition Notice for the future….
On 8 November 2022, the European Commission launched a public consultation on its draft revised Market Definition Notice. The new Notice provides detailed explanatory guidance based on the recent case law of the European Commission and the European Court of Justice. It takes into account the latest market developments, in particular, competition on non-price elements…
The long-awaited Google Android decision is out (see the press release here or the full text here). The General Court has dismissed Google’s action almost in its entirety, slightly reducing the record fine from 4.343 billion euros to (still a record) 4.125 billion euros. This post gives a very first overview of the judgment and…
On 7 February 2021, the Anti-Monopoly Commission of the State Council issued the Anti-Monopoly Guidelines for the Platform Economy (the Guidelines) clarifying the application of the Anti-Monopoly Law (AML) to the potential anti-competitive practices of the online platforms. The issuance of the Guidelines sends a clear message to the online platforms that antitrust enforcement in…
The judgment provides useful jurisdictional clarifications for deals involving joint ventures (JVs) acting as an acquirer. The General Court (GC) confirms that when the true players behind the transaction are the parent companies, rather than the JV — because they did the deal valuation, negotiated the transaction structure, and determined the purchase price — the…
It is almost impossible these days to attend a competition law conference without the topic of ‘Competition law in the digital era’ making up part of the agenda. In addition, enforcers are publishing policy documents on this topic at a rate that makes it a challenge to keep up for even the most diligent competition…
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…
