Author Description

The main objective of the study is to distil principles and best practices for the definition of relevant markets that can inform the review of the Market Definition Notice (hereinafter 'MDN') that the Commission is currently undertaking and, possibly, contribute to the elaboration of an updated version of the MDN. To do this, the study identifies points of convergence, points of divergence and gaps between legal and economic literature, the national decisions and guidelines reviewed on the one hand and the MDN on the other hand. The above-mentioned principles and best practices were identified through desk research - including the analysis of relevant literature and practices by National Competition Authorities (NCAs) - and organised under the four topics on which the study focuses (hereinafter 'topics'): digitalisation, innovation, geographic market definition, and quantitative techniques. First, in relation to digitalisation, the study analyses multi-sided markets including relevant factors and tools, digital ecosystems, the relationship between data and market definition and, finally, the e-commerce sector. Second, the study provides an analysis of the link between innovation and market definition for current product markets, future markets and technology markets. Third, the study presents an overview of how geographic markets are defined, the factors and the evidence that drive the definition of geographic markets, and the role of supply-side substitutability in defining the geographic market. Finally, the study provides an overview of the quantitative methods used to define relevant markets. The main quantitative frameworks covered in the study are the hypothetical monopolist test, demand estimation techniques, price co-movement analysis and catchment areas.