Identifying relevant market Sample Clauses

Identifying relevant market. Identifying relevant market is considered an important, crucial step for a competition restriction case. Identifying relevant market helps assessing market power that the enterprise has, the competitors and the impact of act performed by the enterprise with market power. In the world, an enterprise is considered to have a dominant position when it has a significant market power (for example, Article 102 of TFEU1). The narrower the relevant market is, the more the enterprise is considered to have a dominant position and the ability to restrict competition and vice versa. Usually, competition agencies determine a relevant market based on both product and geography aspects. The purpose of the definition of relevant market in both aspects is to identify the real competitors of the dominant enterprise as well as the ability of competitors in preventing dominant enterprise to carry out unilateral conduct of increasing price or imposing price beyond competition price. On the other hand, the definition of relevant market will assist the calculation of market share (not taking into account other factors), thereby determines the market power of enterprise regarding competition restriction acts. Enterprises having low market share usually do not possess significant market power. 1 TFEU is the abbreviation of ―Treaty of the Functioning of the European Union‖ (also known as Lisbon Treaty), since 2007 The definition of relevant market is the process of looking for the answer to the question ―What are the products that consumers think thay can replace a product at an acceptable level, when considering to characteristics, price, usage and other important properties of the product?‖ There are many types of information and documents to help competition agencies to assess the degree of substitutability between products or the different areas. For each case, the different types of information, evidences could have decisive roles in the process of reviewing and analyzing the case, this will depend on the properties and characteristics of the industry and the product or service that the competition authority is reviewing. Relating to the definition of relevant market, there are two main aspects: demand-side substitution and supply-side substitution. In most cases, the relevant market is often defined based on the customers‘ perspective, that is, demand-side substitution. In addition, if necessary, we have to define the relevant market with taking into consideration the producer...
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