Relevant market definition in EU competition law

This chapter examines how the relevant market is defined for the purposes of EU competition law with the aim of assessing whether the theory and practice of relevant market definition adheres to a model that promotes EU competition law's administrability, efficiency, and effectiveness, the benchmarks by which EU and WTO law are evaluated. It begins by introducing the reader to some key concepts pertaining to market definition in order to offer a backdrop to the analysis. It proceeds to establish the function fulfilled by market definition in EU competition law. Following that, it sets out the method and test employed by the Commission as competition law enforcer in the EU legal order and the EU Courts' application and interpretation of that test. The chapter concludes by bringing together elements of the description into a discussion aimed at shedding light on the efficiency considerations behind the theory and practice of market definition in EU competition law. The chapter shows how the modernisation of EU competition law has meant that the definition of the relevant product and geographic markets have become more transparent and well-founded on economic evidence, reducing the Commission's discretion and the deference shown to it by the Courts. The chapter establishes that overall, and despite some shortcomings, the way market definition is undertaken in EU competition law is supportive of an efficient, effective, and administrable system of competition rules.