Glossary of competition terms

This Glossary is based on definitions from DG COMP’s Glossary of terms used in EU competition policy (© European Union, 2002) and the OECD’s Glossary of industrial organisation economics and competition law (© OECD, 1993). Each term is enriched with references of national case laws from the e-Competitions Bulletin and Concurrences Review.

Failing firm defence

A firm that has been consistently earning negative profits and losing market share to such an extent that it is likely to go out of business. The concept becomes an issue in merger analysis when the acquiring firm argues that the acquisition of such a firm does not result in substantial lessening of competition since it is likely to exit the market anyway. If this is true, the "current" market share of the failing firm may have no "future" competitive significance and should be weighted accordingly.

© OECD

Glossary