Concept Paper: Definition and Delineation of “Relevant Market” in ...

Concept Paper: Definition and Delineation of
“Relevant Market” in Competition Analysis
Submitted to:
Mr. Augustine Peter
Advisor (Economic)
Competition Commission of India, New Delhi
Submitted by:
Surabhi Malik
B.A. (Hons) Economics
Lady Shri Ram College, New Delhi.
Date of Submission: 17 September 2007

Abstract
The definition and delineation of relevant market lies at the core of
competition laws and anti-trust regulation. This has been accepted
worldwide by all anti-trust lawyers and economists as an inherent step in
the process of formulating policies to promote and sustain competition in
their respective countries. In order to check and curb anti-competitive
agreements and abuse of dominance, we must first be able to define the
relevant market in which it occurs, to pinpoint both the sphere and the
periphery of practices and activities which have an appreciable adverse
effect on competition, i.e. to describe the scope of such practices and
activities, the ramifications of which can be considered a significant
obstruction to free trade and consumer interest. While there exist a wide
range of qualitative and quantitative tests to identify a market, recent global
literature converges towards the empirical SSNIP test (Small but Significant
and Non-transitory Increase in Price), which requires the operation of
econometric principles and the analysis thereof. The purpose of this paper
is to study and analyse the concept of definition of a “relevant market” in
competition policy; to briefly touch upon the methods used to define such
markets and their practical applicability; to illustrate, by way of case laws
in different countries, the criteria and reasoning used to identify relevant
markets for curbing anti-competitive practices; and finally, to examine the
extent to which the Competition Act, 2002 adequately addresses delineation
of relevant market in case of services.

Headings
Index
1. Introduction: Competition Policy
1.1 Need for Competition Policy
1.2 Monopolies and Restrictive Trade Practices Act
(MRTP) vs. Competition Act, 2002
2. Relevant Market: Theory
2.1 Significance and need for market definition
2.2 Definition of relevant market
2.3 Economic Tests to define Relevant Markets
2.4 Factors determining Relevant Markets
2.5 Relevant Market definition for Services: Some
considerations
3. Defining Relevant Markets in the framework of
the Competition Act, 2002
3.1 Anti-Competitive Agreements
3.2 Abuse of Dominance
3.3 Combinations Regulations
4. Conclusion
Page Numbers
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