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Home > Competition Law > Glossary of competition terms > Oligopoly
Oligopoly
A market structure with few sellers, who realise their interdependence in taking strategic decisions, for instance, on price, output and quality. In an oligopoly, each firm is aware that its market behaviour will distinctly affect the other sellers and their market behaviour. As a result, each firm will take the possible reactions from the other players expressly into account. In competition cases, the term is often also used for situations where a few big sellers jointly dominate the competitive structure and a fringe of smaller sellers adapt to their behaviour. The big sellers are then referred to as the oligopolists. In certain circumstances this situation may be considered as one of collective (also joint or oligopolistic) dominance.
© European Commission
See also: Collusion(s)
Related national case laws
- The German Federal Court of Justice finds a merger lawful, reversing the Court of Appeal’s prohibition ruling (Phonak/GN Store)
17 June 2010 - The Serbian Competition Authority advises the Government to review the list of medicines provided under the national health insurance scheme (Medicines provided under the national health insurance scheme)
4 November 2009 - The Croatian Competition Authority following a Phase II investigation clears a merger of two petroleum companies subject to structural and behavioral remedies (MOL Hungarian Oil and Gas - INA Industrija nafte)
9 December 2009 - The German Federal Cartel Office clears a merger subject to structural remedies in the sugar regulated and oligopolistic market (Nordzucker/Danisco)
10 December 2009 - The Polish competition authority grants merger clearance to a company close to attaining a dominant position in the national beer market (Kompania Piwowarska / Browar Belgia)
11 June 2008 - The French Minister of Economy grants clearance to a merger in the markets for milk collection and milk supply (Orlait/Comalait)
14 November 2007 - The French Minister of Economy grants clearance to a merger in the market for audit and accounting services (Deloitte/JMF)
9 May 2007 - The Hungarian Competition Authority fines cement producers for concerting market practices through a cement association and for the abuse of dominant position (Holcim Hungária Rt.)
19 March 2009 - The Serbian Competition Authority advises the Government to review the list of medicines provided under the national health insurance scheme (Medicines provided under the national health insurance scheme)
4 November 2009 - The Hungarian Competition Authority fines cement producers for concerting market practices through a cement association and for the abuse of dominant position (Holcim Hungária Rt.)
19 March 2009 - The Serbian Competition Authority advises the Government to review the list of medicines provided under the national health insurance scheme (Medicines provided under the national health insurance scheme)
4 November 2009 - The German Federal Cartel Office clears a merger subject to structural remedies in the sugar regulated and oligopolistic market (Nordzucker/Danisco)
10 December 2009 - The Croatian Competition Authority following a Phase II investigation clears a merger of two petroleum companies subject to structural and behavioral remedies (MOL Hungarian Oil and Gas - INA Industrija nafte)
9 December 2009
| Glossary |
- A
- Absolute territorial protection
- Abuse of a dominant position
- Active sales
- Ancillary restraints
- B
- Bid rigging
- Black cause
- Block exemption (regulation)
- Buyer power
- C
- Cartel
- Collecting society
- Commitments (or remedies)
- Complaint
- Concentration
- Concerted Practice
- D
- De minimis notice
- Divestiture
- Dominant position
- E
- Effect on trade between Member States
- Effects doctrine
- Entry barriers
- Essential facility
- Exclusive distribution
- Exhaustion
- Extra-territoriality
- F
- Failing firm defence
- Fine
- Franchising
- G
- Guidelines
- H
- Hard core restrictions
- I
- Individual exemption
- Interim measures
- Intra-brand competition
- J
- Joint control
- Joint venture
- L
- Leniency (programme)
- M
- Market power
- Merger control procedure
- N
- Negative clearance
- Non-compete obligation
- Non-competition clause
- Notification
- Nullity
- O
- Oligopoly
- P
- Parallel trade (parallel imports)
- Passive sales
- Periodic penalty payment
- Predatory pricing
- R
- Relevant market
- Remedies
- Resale price maintenance (RPM)
- Rescue merger
- S
- Selective distribution
- Services of general economic interest
- Single branding
- Spill-over effects
- T
- Trustee
- Turnover threshold
- Tying or tied selling
- U
- Undertaking
- V
- Vertical agreement