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Globalisation and the definition of the relevant geographic market in antitrust practice

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Author Info

  • Leo Sleuwaegen

    ()

  • Isabelle De Voldere

    ()
    (Vlerick Leuven Gent Management School)

Abstract

This paper starts from the antitrust practices in the European Community and the US with respect to the delineation of the relevant geographic market in dealing with concentrations and shows that regulations and guidelines at this moment focus almost exclusively on demand substitution. However, the process of globalisation involves essentially global supply conditions and competition. A methodology is presented for delineating the relevant geographic market, that better takes this globalisation trend into account and brings both demand and supply substitution better in balance. The practical use of the methodology is illustrated for the Volvo-Scania merger case that was blocked by the European Commission in 1999.

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File URL: http://www.vlerick.com/en/2772-VLK/version/default/part/AttachmentData/data/vlgms-wp-2001-07.pdf
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Bibliographic Info

Paper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number 2001-7.

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Length: 38 pages
Date of creation: 06 Nov 2001
Date of revision:
Handle: RePEc:vlg:vlgwps:2001-7

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