Market Definition Analysis
Market Definition Analysis
A Market Definition Analysis document is a critical component in antitrust and competition law cases, defining the relevant market for assessing market power. Key components include:
1. Executive summary
2. Purpose and scope of the analysis
3. Product or service description
4. Geographic market boundaries
5. Demand-side substitutability analysis
6. Supply-side substitutability analysis
7. SSNIP (Small but Significant Non-transitory Increase in Price) test results
8. Temporal considerations (if applicable)
9. Customer segmentation
10. Competitive landscape overview
11. Regulatory factors influencing market definition
12. Conclusions and implications
This document aims to:
– Determine the relevant market for antitrust analysis
– Identify potential substitutes and market constraints
– Provide a foundation for assessing market power
When drafting this analysis, it’s important to:
– Use empirical data and economic principles
– Consider both product and geographic dimensions
– Address potential criticisms or alternative definitions
– Align with established legal and economic frameworks
A well-crafted Market Definition Analysis serves as a crucial tool for antitrust authorities, courts, and businesses in understanding market dynamics, assessing competitive effects, and making informed decisions in antitrust cases or merger reviews.