Globalization and the definition of the relevant geographic market in antitrust practices.

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 relugations and guidelines at this moment focus almost exclusively on demand substitution. However, the process of globalization involves essentially global supply conditions and competition. A methodology is presented for delineating the relevant geographic market, that better takes this globalization trend into account and brings both demand and supply substitution better in balance. The practical use of the methodology is illustrated for the Volvo-Scandia merger case that was blocked by the European Commission in 1999.Antitrust; Globalization; Demand; Substitution; Processes; Competition; Working;