Market Definition2012The OECD Competition Committee debated Market Definition in June 2012. This documentincludes an executive summary, an aide-memoire of the discussion and the documents fromthe meeting: an analytical note by Ulrich Schwalbe and Frank Maier-Rigaud, writtensubmissions by Australia, Bulgaria, Colombia, Chile, Finland, France, the European Union,Germany, Hungary, Indonesia, Ireland, Israel, Japan, Latvia, Korea, Malta, Mexico, Norway,Peru, Poland, Romania, the Russian Federation, South Africa, Spain, Sweden, Switzerland,Chinese Taipei, Turkey, Ukraine, the United Kingdom, the United States and BIAC as wellas a contribution from Nils Wahl.Market definition is one of the most fundamental concepts underpinning essentially all competition policyissues, from mergers, through dominance/monopolisation to agreements.Market definition provides an analytical framework for the ultimate inquiry of whether a particular conduct ortransaction is likely to produce anticompetitive effects. The roundtable covered market definition from a legaland economic point of view but also new methods ranging from merger simulation models, compensatingmarginal cost reductions (CMCR) to pricing pressure indices (PPI).The debate focused essentially on the legal aspects of market definition and the institutional “embeddedness”of the concept, the circumstances under which market definition may not result in an accurate assessment ofmarket power and alternative tools that have been proposed for specific circumstances such as for exampledifferentiated product mergers under price competition, for which PPI’s were specifically designed.Standard for Merger Review (2009)Two-sided Markets (2009)Presenting Complex Economic Theories to Judges (2008)

UnclassifiedDAF/COMP(2012)19Organisation de Coopération et de Développement ÉconomiquesOrganisation for Economic Co-operation and Development11-Oct-2012English, FrenchDIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRSCOMPETITION COMMITTEEDAF/COMP(2012)19UnclassifiedMARKET DEFINITIONJT03328426English, FrenchComplete document available on OLIS in its original formatThis document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation ofinternational frontiers and boundaries and to the name of any territory, city or area.

DAF/COMP(2012)19FOREWORDThis document comprises proceedings in the original languages of a Roundtable on MarketDefinition held by the Competition Committee in June 2012.It is published under the responsibility of the Secretary General of the OECD to bringinformation on this topic to the attention of a wider audience.This compilation is one of a series of publications entitled "Competition Policy Roundtables".PRÉFACECe document rassemble la documentation dans la langue d'origine dans laquelle elle a étésoumise, relative à une table ronde sur la définition marché pertinent qui s'est tenue en juin 2012 dans lecadre du Comité de la concurrence.Il est publié sous la responsabilité du Secrétaire général de l'OCDE, afin de porter à laconnaissance d'un large public les éléments d'information qui ont été réunis à cette occasion.Cette compilation fait partie de la série intitulée "Les tables rondes sur la politique de laconcurrence".Visit our Internet Site -- Consultez notre site Internet

DAF/COMP(2012)19OTHER TITLESSERIES ROUNDTABLES ON COMPETITION POLICY1Competition Policy and EnvironmentOCDE/GD(96)222Failing Firm DefenceOCDE/GD(96)233Competition Policy and Film DistributionOCDE/GD(96)604Efficiency Claims in Mergers and Other Horizontal AgreementsOCDE/GD(96)655The Essential Facilities ConceptOCDE/GD(96)1136Competition in TelecommunicationsOCDE/GD(96)1147The Reform of International Satellite OrganisationsOCDE/GD(96)1238Abuse of Dominance and MonopolisationOCDE/GD(96)1319Application of Competition Policy to High Tech MarketsOCDE/GD(97)4410General Cartel Bans: Criteria for Exemption for Small and Mediumsized EnterprisesOCDE/GD(97)5311Competition Issues related to SportsOCDE/GD(97)12812Application of Competition Policy to the Electricity SectorOCDE/GD(97)13213Judicial Enforcement of Competition LawOCDE/GD(97)20014Resale Price MaintenanceOCDE/GD(97)22915Railways: Structure, Regulation and Competition PolicyDAFFE/CLP(98)116Competition Policy and International Airport ServicesDAFFE/CLP(98)317Enhancing the Role of Competition in the Regulation of BanksDAFFE/CLP(98)1618Competition Policy and Intellectual Property RightsDAFFE/CLP(98)1819Competition and Related Regulation Issues in the Insurance IndustryDAFFE/CLP(98)2020Competition Policy and Procurement MarketsDAFFE/CLP(99)321Competition and Regulation in Broadcasting in the Light ofConvergenceDAFFE/CLP(99)122Relations between Regulators and Competition AuthoritiesDAFFE/CLP(99)823Buying Power of Multiproduct RetailersDAFFE/CLP(99)2124Promoting Competition in Postal 6Airline Mergers and AlliancesDAFFE/CLP(2000)127Competition in Professional ServicesDAFFE/CLP(2000)23

DAF/COMP(2012)1928Competition in Local Services: Solid Waste ManagementDAFFE/CLP(2000)1329Mergers in Financial ServicesDAFFE/CLP(2000)1730Promoting Competition in the Natural Gas IndustryDAFFE/CLP(2000)1831Competition Issues in Electronic CommerceDAFFE/CLP(2000)3232Competition in the Pharmaceutical IndustryDAFFE/CLP(2000)2933Competition Issues in Joint VenturesDAFFE/CLP(2000)3334Competition Issues in Road TransportDAFFE/CLP(2001)1035Price TransparencyDAFFE/CLP(2001)2236Competition Policy in Subsidies and State AidDAFFE/CLP(2001)2437Portfolio Effects in Conglomerate MergersDAFFE/COMP(2002)538Competition and Regulation Issues in TelecommunicationsDAFFE/COMP(2002)639Merger Review in Emerging High Innovation MarketsDAFFE/COMP(2002)2040Loyalty and Fidelity Discounts and RebatesDAFFE/COMP(2002)2141Communication by Competition AuthoritiesDAFFE/COMP(2003)442Substantive Criteria Used for the Assessment of MergersDAFFE/COMP(2003)543Competition Issues in the Electricity SectorDAFFE/COMP(2003)1444Media MergersDAFFE/COMP(2003)1645Universal Service ObligationsDAF/COMP(2010)1346Competition and Regulation in the Water SectorDAFFE/COMP(2004)2047Regulating Market Activities by Public SectorDAF/COMP(2004)3648Merger RemediesDAF/COMP(2004)2149Cartels: Sanctions Against IndividualsDAF/COMP(2004)3950Intellectual Property RightsDAF/COMP(2004)2451Predatory ForeclosureDAF/COMP(2005)1452Competition and Regulation in Agriculture: Monopsony Buying andJoint SellingDAF/COMP(2005)4453Enhancing Beneficial Competition in the Health ProfessionsDAF/COMP(2005)4554Evaluation of the Actions and Resources of Competition AuthoritiesDAF/COMP(2005)3055Structural Reform in the Rail IndustryDAF/COMP(2005)4656Competition on the MeritsDAF/COMP(2005)2757Resale Below Cost Laws and RegulationsDAF/COMP(2005)4358Barriers to EntryDAF/COMP(2005)4259Prosecuting Cartels Without Direct Evidence of AgreementDAF/COMP/GF(2006)760The Impact of Substitute Services on RegulationDAF/COMP(2006)1861Competition in the Provision of Hospital ServicesDAF/COMP(2006)204

DAF/COMP(2012)1962Access to Key Transport FacilitiesDAF/COMP(2006)2963Environmental Regulation and F(2006)665Remedies and Sanctions in Abuse of Dominance CasesDAF/COMP(2006)1966Competition in Bidding MarketsDAF/COMP(2006)3167Competition and Efficient Usage of Payment CardsDAF/COMP(2006)3268Vertical MergersDAF/COMP(2007)2169Competition and Regulation in Retail BankingDAF/COMP(2006)3370Improving Competition in Real Estate TransactionsDAF/COMP(2007)3671Public Procurement - The Role of Competition Authorities inPromoting CompetitionDAF/COMP(2007)3472Competition, Patents and InnovationDAF/COMP(2007)4073Private RemediesDAF/COMP(2006)3474Energy Security and Competition PolicyDAF/COMP(2007)3575Plea Bargaining/Settlement of Cartel CasesDAF/COMP(2007)3876Competitive Restrictions in Legal ProfessionsDAF/COMP(2007)3977Dynamic Efficiencies in Merger AnalysisDAF/COMP(2007)4178Guidance to Business on Monopolisation and Abuse of DominanceDAF/COMP(2007)4379The Interface between Competition and Consumer PoliciesDAF/COMP/GF(2008)1080Facilitating Practices in OligopoliesDAF/COMP(2008)2481Taxi Services Regulation and CompetitionDAF/COMP(2007)4282Techniques and Evidentiary Issues in Proving Dominance/MonopolyPowerDAF/COMP(2006)3583Managing Complex MergersDAF/COMP(2007)4484Potential Pro-Competitive and Anti-Competitive Aspects ofTrade/Business AssociationsDAF/COMP(2007)4585Market StudiesDAF/COMP(2008)3486Land Use Restrictions as Barriers to EntryDAF/COMP(2008)2587Construction IndustryDAF/COMP(2008)3688Antitrust Issues Involving Minority Shareholdings and InterlockingDirectoratesDAF/COMP(2008)3089Fidelity and Bundled Rebates and DiscountsDAF/COMP(2008)2990Presenting Complex Economic Theories to JudgesDAF/COMP(2008)3191Competition Policy for Vertical Relations in Gasoline RetailingDAF/COMP(2008)3592Competition and Financial MarketsDAF/COMP(2009)1193Refusals to DealDAF/COMP(2007)465

DAF/COMP(2012)1994Resale Price MaintenanceDAF/COMP(2008)3795Experience with Direct Settlements in Cartel CasesDAF/COMP(2008)3296Competition Policy, Industrial Policy and National ChampionsDAF/COMP/GF(2009)997Two-Sided MarketsDAF/COMP(2009)2098Monopsony and Buyer PowerDAF/COMP(2008)3899Competition and Regulation in Auditing and Related ProfessionsDAF/COMP(2009)19100Competition Policy and the Informal EconomyDAF/COMP/GF(2009)10101Competition, Patents and Innovation IIDAF/COMP(2009)22102Standard for Merger ReviewDAF/COMP(2009)21103Failing Firm DefenceDAF/COMP(2009)38104Competition, Concentration and Stability in the Banking SectorDAF/COMP(2010)9105Margin SqueezeDAF/COMP(2009)36106State-Owned Enterprises and the Principle of Competitive NeutralityDAF/COMP(2009)37107Generic PharmaceuticalsDAF/COMP(2009)39108Collusion and Corruption in Public ProcurementDAF/COMP/GF(2010)6109Electricity: Renewables and Smart GridsDAF/COMP(2010)10110Exit StrategiesDAF/COMP(2010)32111Standard SettingDAF/COMP(2010)33112Competition, State Aids and SubsidiesDAF/COMP/GF(2010)5113Emission Permits and CompetitionDAF/COMP(2010)35114Pro-active Policies for Green Growth and the Market EconomyDAF/COMP(2010)34115Information Exchanges between Competitors under Competition LawDAF/COMP(2010)37116The Regulated Conduct DefenceDAF/COMP(2011)3117Procedural Fairness: Transparency Issues in Civil and AdministrativeEnforcement ProceedingsDAF/COMP(2010)11118Competition in Ports and Port ServicesDAF/COMP(2011)14119Crisis CartelsDAF/COMP/GF(2011)11120Horizontal Agreements in the Environmental ContextDAF/COMP(2010)39121Excessive PricesDAF/COMP(2011)18122Cross-border Merger Control: Challenges for Developing andEmerging EconomiesDAF/COMP/GF(2011)13123Competition in Hospital ServicesDAF/COMP(2012)9124Procedural Fairness: Competition Authorities, Courts and RecentDevelopmentsDAF/COMP(2011)122125Remedies in Merger CasesDAF/COMP(2011)136

DAF/COMP(2012)19126Economic Evidence in Merger AnalysisDAF/COMP(2011)23127Unilateral Disclosure of Information with Anticompetitive EffectsDAF/COMP(2012)17128Promoting Compliance with Competition LawDAF/COMP(2011)20129Impact Evaluation of Merger DecisionsDAF/COMP(2011)247


DAF/COMP(2012)19TABLE OF CONTENTSEXECUTIVE SUMMARY . 11SYNTHÈSE . 15BACKGROUND NOTE. 21NOTE DE RÉFÉRENCE . 105CONTRIBUTIONSAustralia . 197Chile . 207Finland . 213France (version française) . 219France (English version) . 231Germany. 241Hungary . 247Ireland . 251Israel. 255Japan . 259Korea . 265Mexico . 273Norway. 279Poland .

DAF/COMP(2012)19 Unclassified English, French. DAF/COMP(2012)19 2 FOREWORD This document comprises proceedings in the original languages of a Roundtable on Market Definition held by the Competition Committee in June 2012. It is published under the responsibility of the Secretary General of the OECD to bring information on this topic to the attention of a wider