Glossary of competition terms

This Glossary matches the list of keywords used by Concurrences search engine. Each keyword is automatically updated by the most recent EU and national case laws from the e-Competitions Bulletin and Concurrences Review. The definitions are excerpt 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).

Buyer power

Ability of one or more buyers, based on their economic importance on the market in question, to obtain favourable purchasing terms from their suppliers. Buyer power is an important aspect in competition analysis, since powerful buyers may discipline the pricing policy of powerful sellers, thus creating a "balance of powers" on the market concerned. However, buyer power does not necessarily have positive effects. When a strong buyer faces weak sellers, for example, the outcome can be worse than when the buyer is not powerful. The effects of a buyer’s strength also depend on whether the buyer, in turn, has seller power on a downstream market. © European Commission