On Friday 26 June, the European Commission launched a public consultation (https://bit.ly/387luUu ) to update the 1997 Market Definition Notice used in EU competition law.
Stakeholders can submit comments and respond to this public consultation, which is open until 9 October 2020.
Competition Policy Commissioner Margrethe Vestager said that EU competition rules must remain suitable for a rapidly changing and increasingly digital world. “It is important that the guidance the Commission gives is up to date and that it sets out a clear and consistent approach to market definition in a way that is easily accessible”.
The world is becoming increasingly digital and interconnected. Changes such as the increase in world trade, including with large emerging markets, the gradual removal of national barriers to trade within the single market, digitisation and the emergence of new leading players in certain sectors “mean that many markets may work differently today”, the Commission argues.
The 1997 Notice may therefore “not address all pertinent questions arising today when defining the relevant product and geographic market”. The Commission has also gained a great deal of experience in market definition over the years; techniques have evolved, and EU jurisdictions have provided additional guidance.
Market definition makes it possible to identify and define the boundaries of competition between undertakings. The definition of a market, in terms of both product and geographic scope, must make it possible to determine whether there are actual competitors capable of constraining the commercial decisions of the undertakings concerned (such as pricing decisions). (Original version in French by Lionel Changeur)