Relevant market is the first element to be considered in the event of a suspected violation of the Law on Protecting of Competition. Our services include definitions of the market and market structure.
In the competition low cases, the first step is definition of the relevant market. It defines the boundaries of competition between firms.
Relevant market has two dimensions:
• relevant product market and
• relevant geographic market.
Relevant product market includes of all products and services which are regarded as interchangeable or substitutable by the consumer because of products' characteristics, prices and their intended usage.
Relevant geographic market includes the area in which the undertakings concerned are involved in the supply and demand of products or services, in which the conditions of competition are sufficiently homogeneous and which can be distinguished from neighboring areas because the conditions of competition are appreciably different in those area.
Correct definition of the relevant market is crucial in competition low cases. Belox has extensive experience in this area and we are using all acknowledged methodologies for definition of the relevant market:
• Small but Significant Non-transitory Increase in Price (SSNIP) Test
• Price correlation analysis
• Granger causality test
• Co integration analysis
• Unbroken chain of substitutability.
Market structure definition
There are three main kind of market structure: perfect competition, oligopoly and monopoly. Which is the consider market depends on level of concentration. It can be measured by indicators such as: market share, relevant market share, CR4, HHI, etc.