A relevant market definition refers to the geographical area within which a company has the ability to exert control over the relevant product market. Deter...
A relevant market definition refers to the geographical area within which a company has the ability to exert control over the relevant product market. Determining a relevant market involves considering various factors, including the company's sales and production data, market share, and the nature of the product.
Geographic market definition outlines the specific geographical areas where a company has the ability to exert control over the relevant product market. This can include the entire country, region, or even the global market depending on the company's reach.
Dominant market position implies that a company has control over a significant portion of the relevant product market, meaning that its sales and profits are substantial compared to its competitors. This dominant position grants a company the ability to influence prices, set production levels, and control the supply chain, impacting the entire market dynamics.
Abuse of dominant position occurs when a company with a dominant market position uses its market power to control prices, output, or both. This can be done through various means, including setting high prices, reducing production, or controlling inputs, impacting the equilibrium of the market.
An example could be a company with a dominant position in the online grocery market. If this company sets higher prices for its products or restricts delivery options, it can influence the market price and indirectly control the consumer price. This can be considered an abuse of its dominant position