What is market sharing competition law?

Market sharing You cannot agree with other businesses to share markets or customers. You’ll be breaking competition law if you agree with another business: not to approach each other’s customers. not to compete with them for customers, for example in specific locations.

Why define markets in competition cases?

Market definition therefore assists in assessing the feasibility and possible effects of an allegedly anti-competitive practice – the heart of a competition investigation. Substitution patterns, and the ranking of substitutes in particular, are also directly useful to a merger investigation.

Why is market definition important to competition law analysis?

Market definition provides a framework for competition analysis. For example, market shares can be calculated only after the market has been defined and, when considering the potential for new entry, it is necessary to identify the market that might be entered.

What is the difference between market share and market power?

The conventional definition of market power is usually expressed as “the power to raise price”. Even a large market share only gives a firm the traditionally-defined power to raise prices when a significant market failure is present.

What is the relevant market for the purposes of Community competition law?

4European Commission Notice on the definition of the relevant market for the purposes of Community competition law(OJ C372, 9.12.97, p 5). A similar approach is also used in the US Department of Justice and Federal Trade Commission Horizontal Merger Guidelines, revised 1992.

How is competition law related to supply side policy?

Competition law is closely connected with law on deregulation of access to markets, state aids and subsidies, the privatization of state owned assets and the establishment of independent sector regulators, among other market-oriented supply-side policies.

Why is the Competition Act important in South Africa?

In general, the Competition Act seeks to maintain and promote competition in the South African market to: Promote economic efficiency, adaptability and development. Provide consumers with competitive prices and product choices.

What was the Competition Amendment Act of 2009?

The Competition Amendment Act of 2009 introduces measures such as criminal sanctions against directors and managers who participate in cartel conduct, or tacitly consent to such conduct; a market inquiry provision to inquire into the state of competition in a particular market; and leniency provisions which protect…