Market definition in the telecoms industry
AbstractMarket definition for antitrust purposes is by now firmly rooted in economic analysis both in the US and the EU, even if the approaches are slightly different. This paper examines the theoretical basis for the legal definitions and assesses whether the general principles need to be adapted when dealing with the telecommunications services industry. The paper finds that the conventional antitrust methodology for market definition can be, to a large extent, readily applied to the telecoms industry but points out some key adjustments that have to be made to this methodology to ensure that the antitrust and regulatory authorities end up defining markets which capture adequately the nature of the competitive interaction in this industry. The definition of markets should be based on a detailed analysis of demand (both complementarities and substitutabilities) and the consideration of all companies which have the assets and capabilities to satisfy these consumer needs. Such an exercise should be done first, and distinguished from the subsequent analysis of the competitive conditions in the markets defined as relevant.
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Bibliographic InfoPaper provided by IESE Business School in its series IESE Research Papers with number D/517.
Length: 30 pages
Date of creation: 02 Sep 2003
Date of revision:
Telecommunications; regulation; market definition; antitrus;
This paper has been announced in the following NEP Reports:
- NEP-COM-2003-10-05 (Industrial Competition)
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