Substitutability In Relevant Market Definitions – A Two Way Street?

Introduction

Market definition is arguably the most essential analytical tool which antitrust regulators across the globe use to analyze competition concerns. An inaccurate market definition would entail incorrect market share computations – the primary and most commonly relied on indicator of a firm's market power. Given the significance of market shares in a competitive analysis, particularly for merger control notifications and analysis, it becomes all the more critical to ensure an accurate market definition. For this purpose, antitrust regulators of various jurisdictions seek to construct a systematic conceptual framework that must be followed while determining the relevant market.