LAW & ECONOMY: ALTERNATIVE - HYPOTHETICAL - MONOPOLIST - TEST - DEFINE - RELEVANT - MARKET - TEST - DIFFICULT - APPLY - ADOPTING - ALTERNATIVES - ADVOCATED - FRENCH - COMPETITION - AUTHORITY - MERGER - GUIDELINES - RISKY - VENTURE - HYPOTHETICAL - MONOPOLIST - OWN - LIMITATIONS - NEEDS - AWARE

Defining relevant market: Do not forget the hypothetical monopolist test

There is no alternative to the hypothetical monopolist test to define the relevant market. Even though the test is difficult to apply, adopting other alternatives such as that advocated by the French competition authority in its merger guidelines is a risky venture. However, the hypothetical monopolist has its own limitations that one needs to be aware of.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. 1. Although not an end in itself, the definition of relevant markets is an essential step in a competition law case. Whether in merger control or in the examination of anti-competitive practices, the Competition Authority (ADLC) delimits the contours of the relevant market in order to assess the market power of the undertakings concerned. 2. While the objective of merger control is to determine whether an operation is likely to create, strengthen or facilitate the exercise of market power, the purpose of defining relevant markets is to provide a preliminary filter based on concentration indicators, such as market share levels or the Herfindhal-Hirschman

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  • RBB Economics (Brussels)

Quotation

Benoît Durand, Defining relevant market: Do not forget the hypothetical monopolist test, December 2010, Concurrences N° 4-2010, Art. N° 32773, pp. 33-43

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