What is relevant market in Competition Act?
Relevant Markets The (Indian) Competition Act, 2002 (‘Act’) identifies a relevant product market to include all products or services regarded as interchangeable or substitutable by the consumer by reason of characteristics, price and intended use.
What is relevant market under Competition Act 2002?
Section 2(r) of Competition Act 2002 reads as: “relevant market” means the market which may be determined by the Commission with reference to the relevant product market or the relevant geographic market or with reference to both the markets; homogenous condition of competition and distinct condition of competition.
What is a relevant market example?
In determining the relevant product market, the analysis assesses those products that are reasonably interchangeable. For example, telemedicine services may arguably be a reasonable substitute for primary care services, but not likely for emergency room services.
What is relevant product market?
Relevant product market is defined as a market comprising all those products or services which are regarded as interchangeable or substitutable by the consumer, by reason of characteristics of the products or services, their prices and intended use.
Why relevant markets define under competition law?
The delimitation of the relevant market provides an indication of the boundaries within which competition between undertakings takes place, making it possible, for instance, to calculate market share, which can be used when assessing market dominance or mergers.
Who may determine relevant market?
Relevant market is defined by consumer or purchaser preferences and actions. For instance, if purchasers consider two goods to be close substitutes or readily interchangeable, those two goods are considered to be in the same relevant market.
Who determines a relevant market?
What is the importance of the market under the Competition Act?
The Competition Act provides for the prevention of anti competitive agreements, abuse of dominant position and combinations. While inquiring the cases in respect of these matters the Competition Commission mainly consider the relevant market for this purpose.
What is the relevant market case?
Why is the definition of relevant market important?
The concept of relevant market is important for the purposes of dominant position and concentration analyses, because an extensive or restrictive approach concerning the relevant market would have direct effects on the finding of a dominant position.
What is a market under competition law?
‘Market’ has a particular meaning within competition law. In competition law, the relevant market seeks to identify the smallest product group (and geographical area) such that a hypothetical monopolist controlling that product group (in that area) could profitably sustain ‘supra competitive’ prices.
How relevant market is determined?
“relevant market” means the market which may be determined by the Commission with reference to the relevant product market or the relevant geographic market or with reference to both the markets; A relevant market can further be divided into ‘relevant product market’ and ‘relevant geographic market’.
